Thor Mining to raise A$250,000 to evaluate new projects supplementing Molyhil

Thor Mining (AIM, ASX: THR) plans to raise A$250,000 through a placing of 16,666,667 new ordinary shares. The funds will be used to evaluate new projects to supplement the Molyhil tungsten and molybdenum project in Australia.

Thor will issue 16,666,667 voting CHESS Depository Interests (CDIs) in the company at 1.5 cents each to sophisticated investor clients of Australian stockbroker Taylor Collison Ltd. Completion of the placing and the receipt of funds are anticipated to take place within the next week. The company intends to make an application to ASX Securities Limited for listing of these CDI’s in due course.

CDIs are a type of security which is used by the Australian Stock Exchange to allow international companies to trade on the local market. CDIs came into existence because it is often not possible for companies incorporated overseas to allow share transfers through the ASX's paperless settlement system.

The company is actively seeking new projects with an emphasis on mainstream commodities to enhance its portfolio. As announced in November 2009, Molyhil is currently on hold due to the depressed price of molybdenum.

In addition the weakness in the US Dollar this year has further impacted on Molyhil’s economics.

The directors remain committed to Molyhil and strongly believe in its long term viability.  Steps have been taken to conserve cash levels. These included cessation of work with third party engineering companies on verifying capital and operating cost savings for Molyhil and a 50% reduction in directors’ remuneration and the redundancy of chief executive officer Ian Sheffield-Parker.  Executive chairman Mick Billing is undertaking his role in the interim.

Molyhil is estimated to have a total resource of 3.75 million tonnes graded at 0.19% molybdenum (MoS2), 0.32% tungsten (WO3) and 28% iron (Fe2O3), including measured resources of 540,000 tonnes graded 0.24% MoS2, 0.33% WO3 and 29.4% Fe2O3 and indicated resources of 2.3 million tonnes graded at 0.18% MoS2, 0.38% WO3 and 29.4% Fe2O3 respectively.  http://www.proactiveinvestors.co.uk/companies/news/12636/thor-mining-to-raise-a250000-to-evaluate-new-projects-supplementing-molyhil-12636.html