Thor raises £0.3m from new investors and Metal Tiger

Australian mineral and development company Thor Mining announced a fresh fundraising on Tuesday, raising £0.3m through a placing subject to shareholder approval.

The AIM-traded firm said it has raised a total of £0.3m before expenses through the placing of 1.2 billion ordinary shares of 0.01p each, at a prices of 0.025p each, with new investors.

Its board said the placing price was set at the bid price of Thor at the time the placing commenced.

Subscribers for the ordinary shares under the placing will also be granted one warrant for every share subscribed for under the placing, valid for 30 months, to subscribe for further ordinary shares at a price of 0.05p per share.

As part of the raising, strategic natural resources investor and fellow AIM company Metal Tiger subscribed for 400 million ordinary shares and 400 million warrants, for £0.1m.

Following completion of the placing, Metal Tiger will hold a 6.97% share in Thor’s enlarged capital.

Thor’s board confirmed the funds raised will enable it to advance a number of ongoing projects, including testing for tungsten mineralisation at selected targets close to Molyhil and assess other strategic opportunities, as well as provide general working capital.

"I am delighted with the funds raised and particularly that this incoming finance was secured at the bid price of Thor with no discount applied,” said executive chairman Mick Billing on the placing.

"Just as important, the money raised supports our plans for accelerating the development of our business.

"In addition to the funds raised through the placing, a further AUD 1.5m is payable to the company within the next nine months following the sale of the Spring Hill Gold Project as announced recently,” Billing added.

Commenting on his company’s involvement, Metal Tiger chief executive Paul Johnson said the firm was continuing to build a diverse range of natural resource investments around what it believes is the bottoming phase in natural resource microcap and junior equities.

“Today's investment is another step in our building process and comes at a time when Thor Mining has recently experienced a strengthening of its finances through the sale of Spring Hill, thus enabling it to orientate toward existing and potentially new project development,” he explained.

“We look forward to monitoring developments at Thor Mining with interest."

At midday BST, shares in Thor Mining had surged 7.14% to 0.04p, while Metal Tiger’s own stock slumped 3.07% to 4.07p.