Torque Metals (ASX:TOR) has secured $4.25 million in equity, which will be put towards exploration at its New Dawn Lithium and Paris Gold projects in Western Australia.
The raise comes as the company begins gearing up at its Penzance Project situated 30km east of Widgiemooltha, WA, with drill programs set to begin imminently at both its New Dawn
Lithium Project and the Paris Gold Project.
The $22.95 million market capitalisation is focusing on expanding the exploration footprint at New Dawn and to follow-up on ‘high-grade’ results at the Paris project. Torque is also focusing on delivering a maiden Mineral Resource Estimate (MRE) for New Dawn, as well as establishing a MRE and exploration target for the Paris project.
Managing Director Cristian Moreno says the company has made ‘great strides’ on New Dawn and continues building the confidence in the project as it presents a ‘great’ development opportunity.
“Our core objectives right now are to test more widely across the mining licences where a number of pegmatites present new drill targets. Infill drilling around the known mineralisation will assist in the conversion of our exploration target to a JORC MRE.
In parallel, I am delighted that the company has sufficient funding to get back to our high-grade Paris Gold Project.
Our first ever round of diamond drilling at Paris last year returned a bonanza intersection of 1.2m @ 185 grams per tonne gold, within a broader intercept of 35m @ 14.12g/t Au from 157.85m. We look forward to realising the great upside along this vast gold-rich corridor.”
This new funding comes in the form of a heavily oversubscribed share placement of $3.75 million, and a drill for equity commitment for up to $500,000 from privately held Topdrill.
Torque received firm commitments for a share placement to raise $3.75 million through the issue of 28.85 million shares at $0.13 per fully paid ordinary share, representing a 13% discount to the last closing share price of $0.15.
Euroz Hartleys and Evolution Capital acted as joint lead managers to the placement.
Investors will receive one attaching unlisted option for every 2 new shares issued pursuant to the placement. The options will be exercisable at $0.25 each, with an expiry date of 7 May 2026.
The company directors have collectively committed to subscribe to $65,000 to the placement, subject to shareholder approval at a general meeting scheduled to be held in early May 2024.
Moreno says Topdrill shares the company’s optimism for the ‘great’ upside that could be unlocked through drilling at New Dawn and Paris.
Torque entered into a drill for equity agreement with Topdrill, which allows the company to satisfy up to 100% of drilling costs invoiced by Topdrill by the issue of ordinary shares in Torque up to $500,000.
The issue price will be referenced to the volume weighted average price for the 5 days prior to the date of invoice and will be subject to a voluntary 6-month escrow period.
The company plans to split drilling across both projects.
Torque Metals is a smart explorer focused on gold, lithium, and nickel in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Torque Metals
