LONDON (SHARECAST) - Thor Mining gained a third of its value today on news it has signed an off-take agreement with CITIC Australia Commodity Trading for its Molyhil tungsten-molybdenum project in the northern territory of Australia.
The life-of-mine deal is for CITIC, one of China's largest state-owned companies, to take all of the molybdenum and tungsten concentrates to be produced from Molyhil.
Thor expects final approvals for the development of the project during the second quarter of 2008.
Molyhil has a current resource of 3.73 million tonnes at 0.51% combined tungsten and molybdenum. The mining reserve contains a total of 4.9 million pounds of molybdenum metal and 700,000 mtu's of tungsten which will be produced over the expected 5.7 year life of the open pit design.
“The negotiation of a long term off-take agreement has been a critical factor in progressing the development of Molyhil,” said chief executive John Young.
“We are very pleased to have secured CITIC as a partner and, with this off-take agreement now in place, we will now move forward to finalise funding arrangements ahead of the planned commencement of construction at Molyhil.”
THR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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