Thor Explorations Closes First Tranche Private Placement Raising $12.5m (us$9.2m)

VANCOUVER, British Columbia, July 10, 2020 (GLOBE NEWSWIRE) -- Thor Explorations Ltd. (TSX VENTURE: THX) (“Thor” or the “Company”) is pleased to announce that it has closed a first tranche in it previously announced brokered private placement raising a total of C$12.5 million (US$9.2m) through the issuance of 69,479,167 common shares at a price of C$0.18 per share.

After the closing of the private placement, the total number of shares outstanding now is 615,126,612.

H&P (Advisory) Limited and Paradigm Capital Inc. acted as Joint Lead Agents to the Private Placement. The Agents received a cash commission on the Offering of 6% of the gross proceeds of the Offering.

In connection with the private placement, the Joint Lead Agents arranged for each subscriber to purchase from certain selling shareholders, one common share, for every two shares acquired under the private placement (the “Secondary Offering”). The Company understands a total of 37,774,265 additional common shares were purchase by the subscribers from the selling shareholders a price of $0.16 per share. Such shares, together with the Common Shares distributed under the private placement, will be subject to a four month and one day hold period expiring on November 10, 2020.

Due to some administrative complexities related to the coordination of the private placement with the Secondary Offering, the Company is seeking to shortly close an additional tranche of the private placement of $1,050,000 subject to TSXV approval.

The Company intends to use the net proceeds from the Offering to fund further exploration drilling of the Segilola Gold Project underground resource and also to drill identified satellite targets in proximity to the Segilola gold project within the project exploration licence and the Company’s surrounding exploration licences. The proceeds will also be used to progress exploration at its prospective Douta Gold Project in Senegal, and for general working capital purposes.

Segun Lawson, President & CEO, stated: “The private placement received strong institutional support, further validating the belief in the upside potential in the Segilola Gold Project held by the Company. The Company is also excited and well positioned to advance its prospective Douta Project in Senegal.

The Company has been informed that the selling shareholders are mainly non-investing entities that received shares as part of the consideration in the historic purchase transactions of the properties in Nigeria and Senegal.