Thor Mining PLC (LON:THR) (ASX:THR) shares jumped on Friday as the company announced it has terminated plans to sell its stake in USA Lithium to Hawkstone Limited (ASX:HWK) and is considering disposal alternatives and operational opportunities for its projects.
The company referred to a statement from Hawkstone which said a shareholder meeting on the acquisition of 100% of USA Lithium was cancelled and that the parties had mutually agreed to terminate the acquisition agreement.
Under the agreement, Thor was to receive 15.6mln shares in Hawkstone for disposal of its US Lithium holding, which at the latest Hawkstone share price of AUS$0.022 equated to gross proceeds of approximately £195,000 in Hawkstone shares, or £176,000 after deduction of the 10% return that was due to Pembridge Resources (LON:PERE) from whom Thor acquired its USA Lithium interest in June 2017.
Thor Mining said it retains its holdings in USA Lithium and is liaising with the management team to determine the way forwards for the business, adding that this includes consideration of disposal alternatives, together with progressing operational opportunities for the projects held.
The company also said, with the effect from 14 June 2018, Thor’s requirement to return 10% of disposal proceeds to Pembridge reduces to 5% for a further 12 months.
In lunchtime trading, Thor Mining shares were up 13.3% to 2.12p.