Thor Mining Acquires US Uranium And Vanadium Assets

Thor Mining has acquired 100% of the shares in American Vanadium, an Australian company which has interests in uranium and vanadium projects in the US.

The consideration for the acquisition comprises an AUD100,100 ($67,463) exclusivity fee, which will be satisfied through the issue of 8.35 million ordinary shares in Thor Mining, and an AUD144,000 ($96,984) acquisition fee to be satisfied by the issue of 24 million ordinary shares. Future payments may also be incurred across three stages subject to the achievement of project milestones.

Thor Mining has also announced that it will pursue strategic financing to allow the acceleration of the company’s project interests, as well as to fund work on the newly acquired projects.

Understanding the acquisition

American Vanadium has 100% interests in 199 contiguous claims in the Uravan Mineral Belt of south-western Colorado, and 100 claims in south-eastern Utah.

Thor Mining has been pursuing expansion of its project portfolio in North America, and the claims it has acquired from American Vanadium include historical mines at the Radium Mountain and Wedding Bell sites that have had intermittent production activity going back more than a century.

Power from nuclear reactors accounted for 20% of US domestic power requirement in 2019, above the roughly 10% of power supply nuclear generation accounts for globally. The US Government has also affirmed its support for uranium mining on US soil, in April this year the Trump administration released a report outlining its plan to revitalise the US nuclear energy industry and support domestic uranium mining.

Thor Mining anticipates a supply shortage for uranium to emerge in the next few years, as the price of uranium in the last decade has discouraged new projects from commencing development. Globally, 53 new nuclear reactors are under construction, with hundreds more proposed, potentially signalling an increase in demand for nuclear fuel.