Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF) has increased its position in southeast Senegal through the acquisition of interests in two licenses. This strategic move aims to capitalize on the company’s progress in advancing the grassroots Douta gold project, which now boasts over 1.7 million ounces of gold in global resources.
Segun Lawson, Thor’s president and CEO, highlighted the significance of the license acquisitions, particularly the one adjacent to the company’s existing resources. ‘The license acquisitions, especially the one adjacent to Thor’s existing resources, provide a low-cost entry for significant exploration upside,’ Lawson stated.
The terms of the main agreement for the Douta West license include a total consideration of $120,000, granting the original license holder a free carry until the completion of a preliminary feasibility study (PFS). After the PFS, the original holder can choose to fund or dilute their interest. The Senegalese government retains a 10% free carry, leaving Thor with an 80% interest.
While a delayed PFS for Douta is expected due to extensive processing flow sheet work, Thor is simultaneously advancing towards the study and initiating exploration activities on the new licenses. Drill results are anticipated throughout the current quarter, including extending drilling programs and analyzing soil and termite samples to potentially expand the total resource base.
In Nigeria, exploration efforts continue at the Segilola mine to extend the life of mine, alongside reaffirming production guidance for the year. Lawson emphasized Thor’s focus on deleveraging, strengthening its balance sheet, and achieving a strong free cash flow position. ‘This year’s strategic emphasis is on exploring satellite deposits and deeper drilling beneath the Segilola pit, with significant news flow anticipated across its Senegalese and Nigerian projects in the upcoming quarter,’ he said, highlighting the company’s exploration and growth plans.
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