THE BOURSE WHISPERER: Thor Mining (ASX: THR) has received a Letter of Intent from United States-based Global Tungsten & Powders Corp (GTP).
The Letter is regards to scheelite concentrate off-take arrangements for Thor’s wholly-owned Molyhil tungsten project in the Northern Territory.
The off-take agreement, under the terms of the letter, is subject to GTP successfully completing technical and legal due diligence, and also to Thor securing necessary funding to develop the Molyhil project.
Off-take for in the order of 70 to 75 per cent of the annual production of scheelite concentrate from Molyhil.
Off-take for the current 4 planned year life-time of the mine with right of first refusal to a 2 year extension term.
A market price of the scheelite concentrate based on discounts to the London
Metal Bulletin (LMB) Low Tungsten APT European free-market price.
“This is both a milestone and a major forward step for the Molyhil project and we welcome the participation of Global Tungsten & Powders which is a significant player in the global tungsten industry,” Thor Mining executive chairman Mick Billing said in the company’s announcement to the Australian Securities Exchange.
“This is very much a first step agreement and remains subject to due diligence requirements and financing being met but nonetheless, he potential for near term development of Molyhil has been significantly enhanced.”
Global Tungsten & Powders Corp. is a division of the Austria-based Plansee Group, a manufacturer of tungsten and molybdenum powders.