Thor Explorations Announces Full Funding and Commencement of Construction of the Segilola Gold Project, Nigeria

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES

VANCOUVER, British Columbia, April 15, 2020 (GLOBE NEWSWIRE) -- Thor Explorations Ltd. (TSX VENTURE: THX) (“Thor” or the “Company”) is pleased to announce that it has executed its definitive documents with the Africa Finance Corporation (“AFC”) to reach full funding of the Segilola Gold Project in Nigeria (the “Project”) and has made the Final Investment Decision to proceed with construction of the Project. The Company has decided to proceed with construction, following the implementation of Covid-19 procedures at the Project, established in accordance with industry best practice and the guidelines set out by the Osun State Government and the Ministry of Mines and Steel Development. Construction commenced in February 2020 and first gold production is scheduled for Q2 2021.

The executed definitive documents include a Subscription Agreement with AFC regarding a private placement of common shares of the Company (the ”Common Shares”) to AFC of C$5,643,150 (US$4,250,000) through the issuance of 28,215,750 Common Shares at a price of C$0.20 per Common Share (the “Tranche 2 Shares”).  This follows the tranche 1 closing on December 5 2019 of C$15.800,000 (US$11,830,000). The Company is also pleased to announce the proposed issuance of 34,750,000 Common Shares against US$5,000,000 of invoices (the “Shares for Debt”) under its EPC schedule.  In the aggregate, the Company expects to close an anticipated total of C$13,000,000 (US$9,250,000) through the issuance of 62,965,750 Common Shares at a price of C$0.20 per Common Share.  The Tranche 2 Shares will be subject to a hold period of four months and one day after the day of such issuance.

The Company, through its wholly owned subsidiary Segilola Resources Operating Limited, has signed definitive documents with the AFC on a US$21,000,000 Stream Agreement, and signed definitive documentation for the provision of US$54,000,000 senior secured credit facility (the “Facility”). This Facility represents the balance of the funding required for the construction of the Project and drawdown is subject to satisfaction of customary conditions precedent.  In connection with the Facility, the Company will issue to AFC 33,329,480 Common Shares at a deemed price of C$0.20 per Common Share in consideration of the risk taken by AFC (the “Bonus Shares”). The Bonus Shares will be subject to a hold period of four months and one day after the day of such issuance.