Thor Explorations Ltd.
TSX VENTURE : THX

February 27, 2012 08:30 ET

Thor Announces Exercise of Option on Douta Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2012) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES

Thor Explorations Ltd. (TSX VENTURE:THX) ("Thor" or the "Company") is pleased to announce that its wholly-owned subsidiary, African Star Resources Incorporated ("African Star"), has exercised its option (the "Option") to acquire a 70% interest in the Douta Gold Project pursuant to the terms of an option agreement between African Star and International Mining Company ("IMC").

As consideration for the exercise of the Option, Thor issued to IMC 11,646,663 common shares, based on a volume weighted average price for the 20 trading days preceding the Option exercise date of C$20.14 (or US$ 20.18) per share. The share payment includes consideration paid to IMC for extending the time period for exercise of the Option.

African Star and IMC intend to set up a property company ("Property Company") to hold each of the parties' interest in the Douta Gold Project and, in accordance with the Senegal Mining Code, the government of Senegal would be granted a 10% "free carry" interest in the Property Company.

Pursuant to the terms of the Option Agreement, IMC's 30% interest will be a "free carry" interest until such time as the Company announces probable reserves on the Douta Gold Project (the "Free Carry Period"). Following the Free Carry Period, IMC must either elect to sell its 30% interest to African Star at a purchase price determined by an independent valuator commissioned by African Star or fund its 30% share of the Property Company's expenses.

About the Douta Gold Project

The Douta Gold Project currently consists of an early stage gold exploration licence located in southeastern Senegal, approximately 700km east of the capital city Dakar. The permit lies within the Kéniéba Inlier which hosts in excess of 40Moz of gold and has attracted major international mining companies.

The permit covers an area of 103 km2, and lies in proximity to recent discoveries of significant gold deposits. Access to the permit is by road from Dakar and the closest town is Kédougou which is approximately 60 km from site.

THOR EXPLORATIONS LTD.

Segun Lawson, President & CEO

This press release does not constitute an offer to purchase securities. The securities to be offered in the offering have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to, or for the benefit or account of, a U.S. person, except pursuant to an available exemption from such registration requirements.

Cautionary Note Regarding Forward-Looking Statements

Except for the statements of historical fact contained herein, the information presented constitutes "forward looking statements". Such forward-looking statements, including but not limited to those with respect to the expected time period for the free carry interest, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Shares Outstanding: 64,798,597

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Contact Information

  • Thor Explorations Ltd.
    Segun Lawson
    President & CEO
    778-373-0102
    604-639-4670 (FAX)
    info@thorexpl.com