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Letter of Intent for Molyhil off-take agreement
Letter of Intent for Molyhil off-take agreement.
About this update from Thor Energy Plc
[{"type":"text","content":"\n \nRNS Number : 6293Q Thor Mining PLC 16 October 2013 \n \n\n16 October 2013\nTHOR MINING PLC\nU.S. GROUP OFFERS CONCENTRATE OFF-TAKE AGREEMENT \nFOR MOLYHIL TUNGSTEN PROJECT\nThe Directors of Thor Mining PLC (\"Thor\") (AIM, ASX: THR) are pleased to announce receipt of a Letter of Intent from United States-based Global Tungsten & Powders Corp. of Pennsylvania(GTP), in respect of scheelite concentrate off-take arrangements for Thor's wholly owned Molyhil tungsten project in the Northern Territory of Australia. \nThe Letter of Intent provides terms for a future off-take agreement, subject to successful technical and legal due diligence, and also to Thor securing necessary funding to develop the Molyhil project, including:\n· Off-take for in the order of 70-75% of the annual production of scheelite concentrate from Molyhil.\n· Off-take for the current 4 planned year life-time of the mine with right of first refusal to a 2 year extension term.\n· A market price of the scheelite concentrate based on discounts to the London Metal Bulletin (LMB) Low Tungsten APT European free-market price¹.\n¹Tungsten concentrate pricing is generally structured at a discount to the tungsten APT price reflecting the value added via the upgrade to APT.\nGlobal Tungsten & Powders Corp. is a division of the Austria based Plansee Group, whose primary emphasis is the manufacture of tungsten and molybdenum powders. With two locations and more than 90 years of experience, GTP is a world leader in powder technology, high temperature metallurgy, and inorganic chemistry.\nCommenting, Mr Mick Billing, Executive Chairman of Thor Mining, said: \"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. This is very much a first step agreement and remains subject to due diligence requirements and financing being met but nonetheless, the potential for near term development of Molyhil has been significantly enhanced.\"\nEnquiries:\n\n\n\n\nMick Billing\n\n\n+61 (8) 7324 1935\n\n\nThor Mining PLC\n\n\nExecutive Chairman\n\n\n\n\nAllan Burchard\n\n\n+61 (8) 7324 1935\n \n...