Thor Explorations, a Nigeria-focused gold miner, on Tuesday, June 22, listed its shares on the London Stock Exchange (LSE) Alternative Investment Market (AIM) with an expected market capitalisation of around £127 million.
The Segilola Gold Project is considered Nigeria’s most advanced gold project with a total probable reserve of 517,800 ounces of gold, grading at 4.02g/t as of March 2021. The project is scheduled to pour its first gold in June 2021.
Thor Explorations’ most advanced project is its 100 percent owned Segilola Gold Project, located in Osun State, Nigeria.
BusinessDay’s check on the share structure of Thor Explorations shows that as of Monday, June 21, 2021, its shares outstanding were 623,070,509 units, shares not in public hands (25.33%).
The company has significant Nigerian and institutional shareholding. Its share distribution shows institutional investors hold 32 percent equity stake, retail investors and others (24%), board and management (9%), and Africa Finance Corporation (17%). Shareholders in Thor Explorations with over 3 percent stake and their number of common shares held are AFC Equity Investments (106,358,480 units) or 17.1 percent; Ruffer (46,701,000 units or 7.5%), ARM Investments (36,341,990 units or 5.8%), Hong Kong Tiande Baorun Trade Limited (34,750,000) or 5.6 percent, AIMS (23,538,915 units) or 3.8 percent, Nigerian Mining Corporation (20,771,478 units) or 3.3 percent, Adbro Limited (19,349,721 units) or 3.1 percent, and Sparkrod Limited (19,203,007 units) or 3.1 percent.
Thor has focused its activities on the development of the Segilola Gold Project, initially through a Preliminary Feasibility Study, completing a Definitive Feasibility Study in 2019, and then completing a Project Financing of $104.5million comprised of equity, debt and a stream facility in 2020.
Thor also has a portfolio of licences in Southwest Nigeria, a region the company considers to be a largely unexplored part of West Africa with highly prospective geology, significant artisanal and small-scale gold mining. The company’s exploration licences in the region cover approximately 913km2.
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The firm has a number of assets in the West African country and is expecting to produce its first gold in July. It is expecting to produce 40,000 ounces of gold from the Segilola project this year, growing to 100,000 ounces in 2022.
Segun Lawson, chief executive, Thor Explorations, says the admission to the AIM market of the London Stock Exchange represents another milestone in the development of the company, “offering wider access for investors as we progress through a transformational period in the company’s development.”
He says, “With near-term production, a clearly defined growth strategy, a positive market setting for gold and a track record of exploration and development success, we are excited to have brought the opportunity to invest in our growing company to London.”
President Muhammadu Buhari hopes that changes Nigeria has made on gold mining regulation will earn the government $500 million a year in royalties and taxes and create 250,000 jobs. The extra revenues from gold could be a lifeline as the coronavirus pandemic and resulting global oil price crash cut off much of the state’s income. Nigeria had lost a total of $3 billion from 2012 to 2018 because of illegal gold mining.
Olamilekan Adegbite, Nigeria’s minister of mines and steel development, states, “The Segilola Gold Project is a pioneering project in Nigeria which we have supported through its development.
“Listing on the AIM market of the London Stock Exchange is not only a testament to the outstanding work carried out by Thor Explorations, but it is also a demonstration that Nigerian mining sector is well-positioned to attract international mining companies and investment.”
The minister had earlier this year said the Federal Government wants to make Nigeria a major gold producing hub in Africa, adding that it was why the administration of President Buhari had given so much support to the sector.
The Ministry of Mines and Steel Development had provided a number of incentives to businesses and investors to spur growth in the sector. Some of the incentives include: waiver on Customs and import duties for plant, machinery and equipment imported for mining operations.
There are also tax holidays of between three and five years for businesses, as applicable; free transferability of funds and permission to retain and use earned foreign exchange; capital allowances of up to 95 percent of qualifying capital expenditure, as well as deductibility of Environmental Costs (money meant for environmental remediation will be tax free) and 100 percent ownership of mineral properties.
AIM is London Stock Exchange’s market for small and medium size growth companies. It provides companies from a wide range of countries and sectors with access to a diverse set of investors and a supportive advisory community that understand the needs of entrepreneurial businesses.
In addition to the Segilola Project, Thor holds a 70 percent interest in the Douta Gold Project located in Southeastern Senegal. The Douta Gold Project lies within the Kénéiba Inlier, which hosts significant gold resources, and has attracted several major international mining companies. Thor is currently advancing the Makosa Discovery in its Douta Licence following a number of successful RC and diamond drilling campaigns. Thor is advancing the Makosa Discovery to a maiden resource in 2021.
It also holds a 49 percent interest in the Central Houndé Project, Burkina Faso. This project consists of three contiguous: Ouéré, Bongui and Legue gold permits located in the prospective Houndé greenstone belt, Southwest Burkina Faso, which are being advanced through an Earn-In Agreement with Barrick Gold Corporation.
