Thor Explorations Ltd has taken a significant step forward in its exploration and development strategy by increasing its holdings in southeast Senegal. The company has acquired interests in two licenses, a move that underscores its commitment to expanding the Douta gold project. With over 1.7 million ounces of gold in global resources already identified, this acquisition is poised to add considerable value to Thor's portfolio.
Segun Lawson, Thor's president and CEO, emphasized the strategic importance of these acquisitions, particularly the license adjacent to the company's existing resources. According to Lawson, this provides a cost-effective opportunity for significant exploration upside. The terms of the agreement for the Douta West license involve a total consideration of $120,000, with the original license holder receiving a free carry until the completion of a preliminary feasibility study (PFS). Post-PFS, the holder has the option to fund their interest or dilute it. The Senegalese government maintains a 10% free carry, leaving Thor with an 80% stake in the project.
Despite expectations of a delayed PFS for the Douta project due to extensive processing flow sheet work, Thor is not slowing down. The company is pushing forward with the study and has already begun exploration activities on the newly acquired licenses. The current quarter is expected to bring drill results, including from extended drilling programs and the analysis of soil and termite samples, which could further expand the project's resource base.
In parallel to its Senegalese endeavors, Thor continues to focus on its operations in Nigeria, particularly at the Segilola mine. Efforts are underway to extend the mine's life, with the company also reaffirming its production guidance for the year. Lawson highlighted Thor's strategic priorities for the year, which include deleveraging, strengthening the balance sheet, and achieving a robust free cash flow position. Exploration of satellite deposits and deeper drilling beneath the Segilola pit are key components of this strategy, with significant updates expected in the coming quarter.
This expansion in Senegal and ongoing projects in Nigeria illustrate Thor Explorations Ltd's dynamic approach to growth and exploration. By strategically acquiring new licenses and advancing existing projects, the company is positioning itself for long-term success in the gold mining sector. For more information on Thor's projects and acquisitions, visit https://www.thorexpl.com.
