Torque Metals (ASX:TOR) has signed an underwriting agreement with Euroz Hartleys to secure $525,000 for ongoing exploration work at its New Dawn Lithium Project in Western Australia.
Under the agreement, Euroz will underwrite the exercise of 2.1 million unlisted options expiring on 22 December 2023 and exercisable at $0.25 each.
For reference, Torque shares were trading at $0.20 as of 2:15pm on 13 December.
Torque Metals Managing Director Cristian Moreno says the commitment from Euroz Hartleys to exercise the options at a price well above the market price shows ‘great confidence’ in the company’s progress at its emerging lithium project.
“Funds raised by the transaction will be applied to Torque’s continuing activities at the New Dawn Lithium Project, near the Bald Hill lithium mine in Western Australia.”
“Funds raised by the transaction will be applied to Torque’s continuing activities at the New Dawn Lithium Project, near the Bald Hill lithium mine in Western Australia”
As previously reported, Torque is busy conducting an inaugural reverse circulation (RC) drilling campaign at New Dawn that has so far demonstrated continuous pegmatite lodes and spodumene.
The settlement of the shares to be issued as a result of this underwriting is expected to occur on or around 5 January 2024.
The underwriting agreement provides for a 6% fee to the underwriter, with sub-underwriters being paid standard fees for a transaction of this nature.
Torque Metals is an ASX-listed explorer focused on its portfolio of assets in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Torque Metals
