Thor Explorations Announces Closing of First Tranche of Its Private Placement for Proceeds of $15.8 Million

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VANCOUVER, British Columbia, Dec. 05, 2019 (GLOBE NEWSWIRE) -- Thor Explorations Ltd. (TSX VENTURE: THX) (“Thor” or the “Company”) is pleased to announce that it has closed its previously announced private placement (see news releases dated August 19, 2019, October 04, 2019 and November 04, 2019) (“Tranche 1 Closing”), raising gross proceeds of C$15,733,850 (US$11,830,000) through the issuance of 78,669,250 Common Shares at a price of C$0.20 per Common Share.  The Tranche 1 Closing includes proceeds of US$6,750,000 from Africa Finance Corporation (“AFC”), the leading infrastructure solutions provider in Africa.

Pursuant to the Subscription Agreement signed with Africa Finance Corporation (the “AFC Subscription”),  AFC has committed to invest a further US$8,250,000 to close concurrently with a second raise of US$13,000,000 (“Tranche 2”) which the Company intends to undertake and close before the end of January 2020.

In the event of a shortfall in the Tranche 2 financing, the Company is pleased to announce that it has agreed terms with AFC, to increase AFC’s subscription to fund any outstanding amount in Tranche 2. This proposed increase in AFC’s subscription is subject to regulatory, shareholder and AFC Board approvals.

The proceeds of the private placements will be used to advance the construction of the Segilola Project (“Project”) and general working capital purposes.

Segun Lawson, President & CEO, stated: “We are extremely pleased to have Africa Finance Corporation as a strategic shareholder of Thor. AFC shares our vision for the development of the Segilola Project, one of the highest grade open pit projects in Africa, with a reserve of over 400,000 ounces. We look forward to working together as we now progress the Project into the construction phase and implement our growth strategy.”

Samaila Zubairu, President and CEO, Africa Finance Corporation stated: “We are glad to be investing in Thor Explorations Ltd. to develop the company’s flagship construction ready Segilola Gold Mine, one of the largest and most advanced institutional quality gold mining projects in our host country. This financing serves as a demonstration case of the viability of large-scale mining projects in Nigeria, and further supports the government’s revenue diversification efforts to reduce the reliance on the oil and gas industry. We look forward to this exciting opportunity to work alongside Thor, a promising junior mining company, in achieving first gold pour within the next 15 months.”