Torque Metals (ASX:TOR) has amended the terms of an agreement to snap up an ‘extensive’ and strategic package of tenements adjacent to its Paris Gold Camp in Western Australia.
The $29.57 million market capitalisation company says under the new terms, rather than pay $1.5 million in cash upon the exercise of the option, as per the initial deal reported in September, it will now pay $600,000 in cash and $900,000 in shares — a ‘significantly’ reduced cash payment for the company.
Shares are expected to be calculated on the 5-day volume weighted average price (VWAP) to the close of trade on 8 December, being just under $0.20 per share.
The amendment to the acquisition comes only days after the company added 3 tenements to the existing footprint at its Penzance Project, as reported last week.
Torque noted that 2 tenements under the Penzance acquisition with private vendor Parker Hill lie adjacent to the Paris Gold Project, and another lies along the same geological trend as the New Dawn Lithium Project, where the company has recently intersected ‘high-grade’ lithium lodes.
Meanwhile, Managing Director Cristian Moreno says the cash retained from the amended Paris deal terms will be applied to activities at the Penzance Project while the company prepares to return to the field in early 2024.
“We are pleased with the strong confidence shown by the project vendors who, are comfortable to see their continued exposure to the projects via an increased scrip component for the acquisition and thereby Torque retaining more cash that we can direct towards activity at the expanded Penzance Project.
“As we reflect on these accomplishments, the team at Torque Metals is eager to return to the field early next year”
As we reflect on these accomplishments, the team at Torque Metals is eager to return to the field early next year. During the coming month, Torque Metals’ technical team will be actively immersed in preparation of an exploration target, which we expect to unveil to the market in January, providing shareholders with an improved appreciation of the project’s scale.”
Torque Metals is an explorer focused on its assets across Australia. The Penzance, New Dawn, and Paris projects sit in the heart of Western Australia’s goldfield region.
As of 30 September 2023, the company had $3.563 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
images: Torque Metals