Thor Energy (ASX:THR) has formed a joint venture (JV) with Investigator Resources (ASX:IVR), operating as Fram under a heads of agreement, for the Molyhill Project in the Northern Territory.
The JV was formed after Investigator spent $1 million on the Molyhill tenements and transferred 25% interest in the tenements, as well as completing the sale of Thor’s 40% interest in the Bonya project.
As part of the agreement, Investigator will earn a 25% interest in Fram and a 75% interest in the Molyhill Project, with the 40% sale of Bonya.
Under the first stage of the JV, Investigator will issue $250,000 worth of shares at $0.05 per share to Thor to earn a 25% interest in the projects.
Under stage two, Fram will give Molyhill written notice of its intent to earn an additional 26% interest in the tenements, bringing its total interest to 51%.
If Fram issues a stage two earn-in notice, it must spend $2 million on exploration on or before the third anniversary of the JV start date, to earn the 26%.
Under stage three of the earn-in, Fram will give Molyhill written notice of its intent to earn another 29% in the tenements, bringing its total interest to 80%. Fram must be $5 million on exploration on or before the sixth anniversary of the JV start date to earn the additional 26%.
Thor Energy Managing Director Nicole Galloway Warland says the stage one commitment is complete and Fram is progressing developments on this tungsten-molybdenum deposit.
“The increase in the mineral resource endowment is underpinning Feasibility work at Molyhill,” Warland says.
“The commitment shown by Fram is diligently working through all aspects of this deposit is to be applauded. The Molyhill divestment and Bonya sale will support the company’s focus on its priority US uranium assets.”
The Molyhill tungsten-molybdenum deposit lies 220km northeast of Alice Springs within the prospective polymetallic province of the Proterozoic Eastern Arunta Block in the Northern Territory.
Write to Aaliyah Rogan at Mining.com.au
Images: Thor Energy
