Thor Energy PLC (AIM:THR, OTCQB:THORF, ASX:THR) associate EnviroCopper Ltd (ECL) has agreed to acquire all of Exploration Licence (EL) 5984 on the Yorke Peninsula, South Australia from Andromeda Mining.
The move consolidates the Alford West joint venture and other in-situ copper recovery prospects within the licence, Thor said.
Andromeda will receive shares equal to 5% of the current EnviroCopper capitalisation, A$50,000 in cash plus additional deferred considerations based on milestones being achieved.
Nicole Galloway Warland, Thor Energy’s managing director, said: "The consolidation of EL 5984 allows ECL to actively pursue in-situ recovery [ISR] copper investigations at the Alford West Project area whilst considering new discoveries across the tenement.
"As the Alford Copper Belt extends through both Thor's Alford East project and the Alford West area, all investigative activities are a positive advancement to the in-situ recovery assessment of the area."
Separately, Thor said Alligator Energy is to invest A$0.9 million for a 7.8% stake in EnviroCopper with an option to increase that to 50.1%.
EnviroCopper is currently advancing ISR trials for environmentally sustainable copper extraction at its Kapunda copper project and has similar plans at Alford West.
BHP (ASX:BHP), through its subsidiary OZ Minerals, is funding a Site Environmental Lixiviant Trial (SELT) of copper ISR at Kapunda.
ISR has been successfully (and economically) used to extract copper in several projects both in Australia and the US, said Thor, with economic and environmental benefits over conventional open pit/crush/heap leach for shallow oxide copper projects.
A technical advisory committee will be formed, enabling Alligator to assist EnviroCopper with its planned in-situ trial work across all projects.
Thor's 30% holding in EnviroCopper will be diluted to 26.5% following the investment by Alligator and the Andromeda agreement.
Galloway Warland added: “The A$0.9m investment by Alligator Energy into ECL justifies the decision made by Thor in its early investment of A$1.0m in return for the initial 30% equity stake Thor had in EnviroCopper. “