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Thor Mining's proposed USA Lithium sale collapses
Exploration and development firm Thor Mining on Friday confirmed that the proposed sale of its 25% interest in USA Lithium to Hawkstone Mining Limited has been abandoned.
The AIM traded company said both parties have agreed to cancel the a proposed deal which would have seen Thor acquire 15.625m shares in Hawkstone for disposal of its USA Lithium, equating to gross proceeds of £0.195m at the latest Hawkstone share price of A$0.022.
The agreement by which Thor acquired its interest in USA Lithium from Pembridge Resources dictates that Thor is required to pay 10% of any consideration for the sale of its interest if it is sold on within 12 months of the June 2017 acquisition.
If the disposal were to take place between 12 and 24 months after the acquisition that amount would be reduced to 5% of sale proceeds.
Thor's management team is considering disposal alternatives for USA Lithium, together with development opportunities on its projects.
In a further update, Thor noted that drilling approvals at the Big Sandy Lithium project have been received from the bureau of land management in Nevada.
As of 1030 BST, Thor Mining's shares were up 4% at 1.95p.