On September 6, Torq Resources Inc. (TSXV:TORQ) (OTCQX:TRBMF) announced a non-brokered private placement of C$15 million with a wholly owned subsidiary of an international NYSE-listed gold mining business, Gold Fields, at a purchase price of C$1.00 per share on September 6.
The funds will be used to pursue exploration at Torq’s (TSXV:TORQ) (OTCQX:TRBMF) Chilean project portfolio, particularly its Santa Cecilia gold-copper project, for which the company recently inked a seven-year social access agreement. This arrangement aligns with the term of the underlying option agreement and,significantly, allows drilling and exploration to begin.
The business will issue 15,000,000 common shares of Torq (TSXV:TORQ) (OTCQX:TRBMF) at $1.00, reflecting a 23% premium to the TSX Venture Exchange’s 20-day average trading price of Torq (TSXV:TORQ) (OTCQX:TRBMF) common shares ending September 2, 2022. Following the completion of the private placement, Gold Fields will hold roughly 15.05% of Torq’s (TSXV:TORQ) (OTCQX:TRBMF) issued and outstanding shares (undiluted).
Shawn Wallace, Torq (TSXV:TORQ) (OTCQX:TRBMF) CEO & Chair, said: “We are very pleased to have attracted Gold Fields as a strategic investor in Torq (TSXV:TORQ) (OTCQX:TRBMF). An investment of this size at this early stage of exploration represents tremendous confidence in our projects, our approach and our team. This capital will primarily finance the highly anticipated maiden drill program at our flagship Santa Cecilia gold-copper project, as well as additional drilling at Margarita, where we have been working to expand upon our exciting new discovery.”
Torq (TSXV:TORQ) (OTCQX:TRBMF) intends to use the net proceeds primarily for drilling at its Santa Cecilia gold-copper project in Chile’s Maricunga belt and drilling at its Margarita IOCG project in Chile’s Coastal Cordillera belt. The private placement is scheduled to close on or around September 15, 2022, subject to TSX Venture Exchange clearance and other usual closing conditions.
Concerning the strategic investment, the financial advisor to Torq Resources Inc. (TSXV:TORQ) (OTCQX:TRBMF) was Minvisory Corp., which will receive customary compensation based on success, and the legal advisors were McMillan LLP. Gold Fields’ legal advisors were Fasken LLP.
For more information on Torq Resources Inc. (TSXV:TORQ) (OTCQX:TRBMF), please visit this link.
SOURCE Torq Resources Inc. (TSXV:TORQ) (OTCQX:TRBMF)
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