LONDON (ShareCast) - (Sharecast News) - Thor Energy announced on Tuesday that it has agreed a term sheet to sell its 75% stake in the FRAM joint venture, which owns the Molyhil tungsten, molybdenum and copper project in Australia's Northern Territory, to ASX-listed Tivan for AUD 8.75m.
The AIM- and ASX-traded company said the sale would deliver it AUD 6.56m (£3.2m) to Thor, with the remaining AUD 2.19m to partner Investigator Resources.

Around 60% of the total consideration was expected to be paid within 12 months of signing, followed by three annual deferred payments in cash, shares or a combination at Tivan's discretion.

Completion was targeted for December, subject to conditions precedent.

Thor said the deal would provide a significant non-dilutive boost to its balance sheet, alongside proceeds from its recent Metals One and DISA uranium transactions, strengthening its ability to accelerate exploration at its HY-Range natural hydrogen and helium project in South Australia.

"I am delighted to announce the Term Sheet executed with Tivan today," said chairman Alastair Clayton.

"The Molyhil Project requires, amongst other things, specific sector expertise and a significant balance sheet to unlock the potential of the Project, of which Tivan has both.

"Then there are the obvious synergies with Tivan's Sandover Project to the NE of Molyhil.

"For Thor shareholders, the monetisation of Molyhil means a significant inflow of cash to the Company over the next 12 months and beyond.

"This means more resources to advance Hy-Range and less dilution to achieve this."

Clayton added that Thor remained focused on advancing HY-Range while continuing to monetise much of its legacy portfolio.

At 1328 BST, shares in Thor Energy were up 16.36% at 0.64p.

Reporting by Josh White for Sharecast.com.

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