- Thomson to issue 7,200,000 shares at 5c per share to private investors
- Funding will progress the Harry Smith Gold Project
- Bygoo JV final payment deferred
The Placement comprises an issue of 7,200,000 ordinary shares at an issue price of 5 cents per share. The issue price represents a significant premium to the volume weighted average price (3.9 cents) of Thomson Resources shares for the last month. Attached is an Appendix 3B (see link below) for the issue of the placement shares.
The purpose of the new funding is to progress the drilling at the Harry Smith Gold Project where promising drill results including 54m at 1.0 g/t Au and 13m at 1.2 g/t Au were returned from shallow depths in the first round of drilling (detailed in Thomson's release of 26 March 2018). New drilling to take place in the current quarter will be targeted to extend the footprint of the mineralised zone.
Significantly for the Bygoo Tin Joint Venture, the placement of 4,800,000 shares to private Canadian investor, BeiSur OstBarat Agency Ltd, has triggered the deferment of the A$1,500,000 payment due on June 30, 2018 for a maximum of 12 months. BeiSur intends to vend the JV Agreement into a publicly listed company in Canada. BeiSur have also agreed to pay a JV Agreement holding fee of A$50,000 per month for each month the A$1,500,000 is not paid after June 30, 2018.
Recent payments of A$660,000 under the Bygoo JV agreement bring the total amount so far paid to Thomson to A$1,500,000, and leaves Thomson well-funded to progress the Bygoo Tin project towards a JORC resource estimate. Drilling at Bygoo will also commence this quarter.
Bygoo Tin Project
The Bygoo Tin Project was acquired by Thomson Resources in 2015 and lies on the 100% owned EL 8260. The EL surrounds the major tin deposit at Ardlethan which was mined until 1986, with over 31,500 tonnes of tin being produced (reference Paterson, R.G., 1990, Ardlethan tin deposits in the Australasian Institute of Mining and Metallurgy Monograph no. 14, pages 1357-1364). The Ardlethan tin mine was shut down abruptly in 1986, leaving substantial mineralisation untapped. There are several early-twentieth century shallow tin workings scattered up to 10km north and south of Ardlethan, and few have been tested with modern exploration. Thomson has had immediate success in drilling near three of the historic workings, Bygoo North, South and Bald Hill.
At Bygoo North Thomson has intersected multiple high-grade tin intersections in a quartz-topaz-cassiterite greisen including 11m at 1.0% Sn (BNRC10), 35m at 2.1% Sn (BNRC11), 11m at 1.4% Sn (BNRC13), 11m at 2.1% Sn (BNRC20), 29m at 1.0% Sn (BNRC33) and 19m at 1.0% Sn (BNRC40). The greisen zones appear to be steep to vertical; about 5-10m wide in true width; strike east-west; and the tin intersections appear to have continuity within the greisen.
As announced to the ASX on 21 November 2016, Riverston Tin PL (a wholly owned subsidiary of Thomson) signed a Farm-in and Joint Venture Agreement for its Bygoo Tin Project with a Canadian investor (BeiSur OstBarat Agency Ltd). As recently amended Bei Sur (or nominee) can earn a 51% interest by contributing $A3 million in staged payments by 30 June 2019. Bei Sur then has an option to contribute additional $A22 million to earn a further 25% interest.
[For further information and the detail of the above see Thomson Resources ASX Releases of 21 November 2016, 28 June 2017, 16 October 2017 and 5 April 2018]
Harry Smith Gold Project
The Harry Smith Gold Project was granted to Thomson Resources in 2016 and lies 30km south of Ardlethan. Two distinct gold-bearing quartz reefs occur at the Harry Smith prospect and were worked historically from 1893 to 1942. Total recorded production was over 3,500 ounces of gold (Mines Record 2507). The last modern exploration was in 1995, with intercepts of GG95-2 (25m at 2.2 g/t Au from 16m depth) and GG95-13 (18m at 2.4 g/t Au from 73m depth) confirming the potential of the Golden Spray area at the northwest end of the Harry Smith line of lode.
The Harry Smith gold prospect and other nearby gold shows appear to be of the Intrusion-Related Gold deposit type, related to the Grong Grong granite intrusion which lies 1km to the south.
[For further information and the detail of the above see Thomson Resources ASX Releases of 16 September 2016, 26 March 2018, and 19 June 2018]
To view figures and Appendix 3B, please visit:
About Thomson Resources Ltd
Thomson Resources Ltd (ASX:TMZ) is an NSW active mineral explorer. Thomson has several tin projects (including an advanced project near Ardlethan), as well as gold, copper and zinc targets in a range of settings. Thomson has a good record of discovery, with multiple new Intrusion-Related Gold (gold with copper, lead, zinc, molybdenum, tungsten) systems discovered in the Thomson Fold Belt in the NW of the state.
Thomson Resources Ltd