Australian mineral developer Thor Mining announced that it has signed an option agreement with PC Gold to sell its interests in the Spring Hill gold project in the Northern Territory and the Dundas gold project in Western Australia.
Thor said that the terms of the agreement provide PC Gold with a 30 day option to acquire both projects for a total of $3.5 million.
If PC Gold decides to exercise the option to acquire the projects, it will also be required to pay a royalty of A$6/oz of gold produced from the Spring Hill tenements – where gold is sold for up to A$1,500/oz – and a A$14/oz royalty if gold is sold for amounts over A$1,500/oz.
“The sale of the Spring Hill and Dundas Gold Projects is a great result for Thor and will generate substantial cash upside for the Company in a challenging market,” said Thor Mining’s Executive Chairman, Mr Mick Billing.
“It also allows Thor to continue to focus on its core tungsten projects in Australia and the United States. In addition, the continued exposure for Thor to the Spring Hill gold project via the attractive royalty stream provides a free carried ongoing interest in this project.”