Thor plans to raise $4.25 million, adds four new exploration licenses in Nigeria

Diamond drilling at a Thor Explorations project in Africa. Source: Thor Explorations Ltd.

Thor Explorations Ltd. [THX-TSXV] said Friday a subsidiary has been granted four new gold exploration licenses in southwest Nigeria. The new licenses, which cover 334 km2, are located between 30 km and 80 km from the company’s flagship Segilola Gold Project. Thor said the licenses feature significant sections of the structural trends that extend northwards from the Segilola high grade gold deposit.

“The acquisition of these licenses is in line with Thor’s strategy to capitalise on its first mover advantage in Nigeria where we have established a strong, experienced exploration team and are developing the Segilola Gold Project through to production,” said Thor Explorations President and CEO Segun Lawson.

“The new licenses will add to Thor’s existing pipeline of West African gold exploration projects which we will continue to create shareholder value through advanced exploration and development,’’ he said.

Thor Explorations is a Canadian mineral exploration company engaged in the acquisition, exploration and development of mineral properties located in Nigeria, Senegal and Burkina Faso. Aside from Segilola, its portfolio of projects includes the Douta Gold Project in southeast Senegal, and a 49% interest in the Hounde gold project in Burkina Faso.

On Friday, the company said it is raising $4.25 million via a non-brokered private placement of up to 25 million common shares at $0.17 per common share. The securities being issued under the private placement will be subject to a four month hold period.

Thor said it plans to use the proceeds from the private placement for the following purposes:

  • Advance the Segilola Gold Project to development through the completion of a definitive feasibility study;
  • Continue exploration activities on the Segilola mining and exploration licenses, where the existing resource is open at depth and prospective on strike to the north;
  • A further phase of exploration drilling at the Makosa prospect in the Douta exploration license in Senegal, where the company is targeting a potential maiden mineral resource in 2018;
  • Preliminary exploration on the new licenses in Nigeria;
  • Ongoing exploration target generation.

Thor’s key asset is the Segilola Project, a proposed open pit gold mine with a probable reserve of 448,000 ounces, grading 4.2 g/t gold. It is located approximately 120 km northeast of Lagos in the Osun region of Nigeria. The project is fully permitted and development ready. A 25-year mining license was issued for the project in September, 2016.

Thor Explorations shares rose 8.33% or $0.01 to $0.13 in noon trading on Friday.

Filed in: Gold, Resources

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