Thor Mining acquires US uranium and vanadium assets
Wednesday, June 3rd, 2020
Thor Mining has acquired 100% of the shares in American Vanadium, an Australian company which has interests in uranium and vanadium projects in the US.
The consideration for the acquisition comprises an AUD100,100 ($67,463) exclusivity fee, which will be satisfied through the issue of 8.35 million ordinary shares in Thor Mining, and an AUD144,000 ($96,984) acquisition fee to be satisfied by the issue of 24 million ordinary shares. Future payments may also be incurred across three stages subject to the achievement of project milestones.
Thor Mining has also announced that it will pursue strategic financing to allow the acceleration of the company’s project interests, as well as to fund work on the newly acquired projects.
Understanding the acquisition
American Vanadium has 100% interests in 199 contiguous claims in the Uravan Mineral Belt of south-western Colorado, and 100 claims in south-eastern Utah.
Power from nuclear reactors accounted for 20% of US domestic power requirement in 2019, above the roughly 10% of power supply nuclear generation accounts for globally. The US Government has also affirmed its support for uranium mining on US soil, in April this year the Trump administration released a report outlining its plan to revitalise the US nuclear energy industry and support domestic uranium mining.
Thor Mining anticipates a supply shortage for uranium to emerge in the next few years, as the price of uranium in the last decade has discouraged new projects from commencing development. Globally, 53 new nuclear reactors are under construction, with hundreds more proposed, potentially signalling an increase in demand for nuclear fuel.
China accounts for more than 50% of the global vanadium supply, an important material for improving the tensile strength of steel. As tensions between the US and China escalate, and the US seeks to move away from its reliance on China for raw materials, Thor Mining could stand to benefit from domestic vanadium production.
Executives respond to the deal
Commenting on the acquisition, Thor Mining executive chair Mick Billing said: “This is an outstanding opportunity for Thor and its investors. Deposits from the Uravan Mineral Belt have produced large quantities of high-grade uranium and vanadium ore over decades until the early 1980s when the global uranium price collapsed.”
“We have a Colorado-based team ready to commence a sampling program from the historical mines around Wedding Bell and Radium Mountain mines, along with other field due diligence activities, and we look forward to the results of that work then, with funds available from this capital raising, move on to permitting and drilling as soon as possible.
Thor Mining company overview
Thor Mining is an exploration and development company with a 100% interest in the Molyhil tungsten project in the Northern Territory of Australia, as well as a 100% interest in the Pilot Mountain tungsten project in the US state of Nevada. The company also holds interests in several other properties, including a copper development project, and a lithium exploration company in the US.
An updated feasibility study on the Molyhil project was completed in August 2018. Subject to securing financing for the project, Molyhil is scheduled to commence production this year.https://www.mining-technology.com/deals-analysis/thor-mining-acquires-uranium-vanadium-assets/