Thor Mining completes sale of Australian gold project

Thor Mining has completed the sale of its Australian gold project to miner PC Gold in order to start drill programmes at other projects.

The AIM-listed company has completed the sale of the Spring Hill gold project with a final settlement of AU$1.5m.

Last February, Thor said it would sell Spring Hill for AU$3.5m, of which the AU$1.5m was for the remaining 40% stake in the project.

The deal also includes royalties of AU$6 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for up to AU$1,500 per ounce, and AU$14 per ounce of gold produced where the gold produced is sold for over AU$1,500 per ounce.

Executive chairman Mick Billing said the AU$1.5m received will allow the company to accelerate its exploration programmes starting with the Pilot Mountain drilling program, due to start in the next two weeks, and the new drilling programme planned at the Dundas gold project in the first half of 2017.

He also said that the strengthened balance sheet will also provide Thor with greater financing flexibility as its assesses new project opportunities.

Billing added: "Based on work carried out to date, we believe that PC Gold plans to advance the Spring Hill gold project into production in the medium term, an outcome which would generate a potentially substantial royalty stream for Thor."

Shares in Thor Mining were down 0.86% to 0.694p at 1046 GMT.