Torque Metals Ltd (ASX:TOR) has agreed to amended terms to acquire 100% of the extensive and strategic package of tenements adjacent to its Paris Gold Camp, including the New Dawn Lithium Project.
The previous terms stipulated a cash payment of $1.5 million upon exercising the option. These terms have now been revised to a reduced cash payment of $600,000, with the remaining $900,000 to be settled in shares.
The number of shares will be determined based on the 5-day Volume Weighted Average Price (VWAP) as of the close of trade on December 8, which was 19.87 cents per share, amounting to a total of 4,529,442 shares.
More cash for exploration
“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,” Torque’s managing director Cristian Moreno said.
“Drilling at the New Dawn Lithium Project has yielded exceptionally positive results, underscoring the significant potential of this promising project.
"Our most recent drilling returned a best cumulative intersection of over 35 metres showcasing the project’s robust lithium concentrations, including 10 metres at 1.51% Li2O from a depth of 51 metres, 15 metres at 1.17% Li2O from 220 metres, and an additional 10 metres at 1.15% Li2O from 265 metres.
Read more: Torque Metals confirms high-grade lithium at New Dawn Project, just 600 metres from active mine
“These findings highlight the rich lithium grades within the project area, setting a solid foundation for future exploration and potential development.
“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.”