LONDON (ShareCast) - On Friday Thor Mining said Crocodile Gold Australia Operations (CGAO) has given notice of withdrawal from the memorandum of understanding for toll treating Thor's Spring Hill gold ore.

Having signed the MoU in April last year, CGAO has now opted to withdraw citing its own projected requirements for the use of its Union Reefs processing operation as the reason behind the decision.

CGAO felt the use of its processing plant, located in Australia's Northern Territory, would leave insufficient capacity to commit to toll treatment for the Spring Hill Joint Venture participants, Thor Mining PLC and Western Desert Resources Limited, Thor explained in a statement.

"The focus of Thor has increasingly, in recent months, shifted towards its tungsten business in the Northern Territory and the United States," said Thor executive chairman Mick Billing

"The Molyhil (NT) tungsten project is key to the future of Thor, and our primary goal is to complete an upgrade of the Definitive Feasibility Study for this project as soon as possible and secure project finance.

"The Spring Hill gold project, however, has both current value and very attractive exploration upside, and the Directors are committed to exploring all potential alternatives to deliver value from it."

Thor shares were down 18.08% to 0.106p at 15:56 on Friday.

DC

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