Torque Metals (ASX:TOR) has signed a binding agreement with private vendor Parker Hill to acquire 3 tenements next to the Penzance Project in Western Australia.
Of these 3 tenements, 2 lie adjacent to the Paris Gold Project, and 1 holds lithium potential along the same geological trend as the New Dawn Lithium Project.
Torque says this acquisition will increase its potential land area to 600km-square.
Under the terms of the transaction, Torque will issue to Parker Hill 500,000 ordinary shares at $0.32 per share, alongside 1.5 million unlisted options with an exercise price of $0.60 and expiring 3 years from the date of issue.
Torque, which has a $36.18 million market capitalisation, will also pay Parker Hill $20,000 as a part reimbursement for the tenement expenditures.
The issue of shares and unlisted options are subject to shareholder approval, which Torque will seek in November this year.
Torque Metals Managing Director Cristian Moreno says this expansion enhances the company’s portfolio and strengthens its regional presence.
In tandem with this announcement, Torque reports it has been progressing a diamond drilling program at its New Dawn project. To date, 7 holes have been completed for 1,100m.
The drilling is aimed at testing known pegmatitic bodies for spodumene and tantalum.
Results are expected to shed first light on the project’s lithium potential and the geological characteristics of the pegmatites.
Parallel fieldwork at New Dawn has also uncovered pegmatite outcrops on the western side of the tenements, unveiling a broader spectrum of lithium-prospective targets for follow-up exploration.
Torque says this is subject to further investigation, following the completion of the current round of drilling.
Moreno says: “In less than a month since we announced the option to purchase a strategic tenement portfolio, Torque swiftly followed up with its inaugural drilling campaign.
“With a strong balance sheet, Torque Metals is poised to maintain drilling momentum to fully understand the entire lithium and tantalum endowment at New Dawn”
We await imminent assay results from the first 4 diamond holes, while samples from ongoing drilling are currently en route to the lab. With a strong balance sheet, Torque Metals is poised to maintain drilling momentum to fully understand the entire lithium and tantalum endowment at New Dawn.”
The New Dawn project includes 2 mining licences considered prospective for lithium.
Torque Metals is a precious and battery metals explorer focused on its assets in Western Australia. The company says it’s continuing to evaluate and pursue other prospective opportunities in the resource sector with a strategy to develop ‘high-quality’ assets.
As of 30 June 2023, the company had $2.09 million cash at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Torque Metals
