Thor Mining has signed a Memorandum of Understanding (MOU) for the vending of its interest in the Kapunda Copper Project into a new copper focused company, Enviro Copper.
The MOU, subject to a 90-day due diligence period, has been executed between Thor Mining, Environmental Copper Recovery (ECR) and Environmental Metals Recovery (holding earning rights, subject to due diligence, to 75 per cent of Moonta copper project comprising the northern portion of exploration licence EL5984), for the merging of the respective interests, and the formation of Enviro Copper, to hold and advance those interests.
Thor Mining holds rights to a 60 per cent interest in ECR for the consideration of AU$1.8 million in project funding. Under the MOU, Thor will relinquish its interest in ECR and acquire a 25 per cent, pre-listing, interest in Enviro Copper for total funding of AU$0.6million (including funds already provided).
Thor will also hold the right to acquire a further 5 per cent seed capital interest in Enviro Copper for consideration of an additional AU$0.4 million.
The agreement is conditional upon execution of a binding Farm-in and Joint Venture Agreement in respect of the Kapunda project, and also upon satisfactory due diligence in respect of the Moonta project acquisition from Andromeda Metals by Environmental Metals.
Following the acquisition of the Kapunda and Moonta Copper Project interests, Enviro Copper will aim to develop an expanded portfolio of low environmental impact In-situ Recovery (ISR) copper opportunities, initially in South Australia.
Mick Billing, Thor Executive Chairman, stated that the non-invasive production technique of In-situ Recovery of copper has the potential to co-exist without significant disruption to farming and once completed, have little to no impact on future agricultural land use.
“ISR is an extension of proven technology and has been in use since the 1960s. With recent technical advances, ISR can now offer a lower footprint and is likely to find further application in mineral recovery fields because it can coexist with other land use activities,” said Mr Billing.
Enviro Copper’s initial portfolio will be comprised of: Kapunda Copper Project, hosting an ISR amenable Inferred Mineral Resource Estimate of 119,000 tonnes contained copper, also with Australian Government CRCP Grant funding of AU$2.85million to demonstrate feasibility; and Moonta Copper Project, with an ISR amenable Exploration Target for the Moonta Copper Project in the range of 430,000 and 713,000 tonnes of contained copper.
A key strategic target will be the timely development of the Kapunda Copper Project into production, demonstrating the operational viability of ISR. This experience will then be applied at the larger scale Moonta Copper Project and to additional new project opportunities acquired by Enviro Copper.
“This is a very exciting development in our copper strategy, potentially adding significant scale to our copper interests by bringing the Moonta Copper Project together with our existing interest in the Kapunda Copper Project, into a potentially large ISR focussed copper business,” said Mr Billing.
“While Kapunda is comparatively more advanced, the Moonta project, albeit at an earlier stage, provides potential for a much larger, and longer-term copper production entity.”