(Kitco News) - Torq Resources (TSX-V: TORQ) today announced a C$15 million non-brokered private placement with a wholly owned affiliate of major global gold producer Gold Fields, at a purchase price of C$1.00 per share.
The company said it will issue an aggregate of 15,000,000 Torq common shares at $1.00, which represents a 23% premium to the 20-day average trading price of Torq‘s common shares on the TSX Venture Exchange, ending September 2, 2022.
Upon closing of the private placement, Gold Fields will own approximately 15.05% of Torq‘s issued and outstanding shares (undiluted), the company added.
According to a press-release, the funds will be used to advance Torq‘s portfolio of projects in Chile, primarily its Santa Cecilia gold-copper project, where the company has recently signed a 7-year social access agreement, which covers the length of the underlying option agreement and most importantly will allow for drilling and other exploration activities to commence.
Torq Resources CEO and Chair Shawn Wallace said, ”We are very pleased to have attracted Gold Fields as a strategic investor in Torq. 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.“
Gold Fields CEO Chris Griffiths commented, ”The investment in Torq will strengthen our presence in Chile, which is a highly prospective and stable mining destination. It further boosts our exploration efforts with two of Torq‘s exploration projects to augment our Salares Norte project, which is set to come on stream next year.“
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