Torque Metals Ltd (ASX:TOR) has injected $4.25 million into its cash reserves via a placement and a drill-for-equity deal ahead of imminent drilling programs at its New Dawn Lithium Project and Paris Gold Project.
The company raised $3.75 million via a heavily oversubscribed share placement and a further $500,000 through a drill-for-equity deal with Topdrill Pty Ltd.
These funds will be used to expand the exploration footprint and produce a maiden mineral resource at New Dawn and follow up high-grade results with deeper diamond drilling at Paris as well as producing a resource estimate and exploration target for the latter.
Targeting resource estimates
“We have made great strides on our New Dawn Lithium Project over the short time since we acquired the project and Torque’s confidence builds that New Dawn will ultimately present a great development opportunity,” Torque Metals managing director Cristian Moreno said.
“Our core objectives right now are to test more widely across the mining licences where a number of pegmatites present new drill targets.
“Infill drilling around the known mineralisation will assist in the conversion of our exploration target to a JORC mineral resource estimate.
“In parallel, I am delighted that the company has sufficient funding to get back to our high-grade Paris Gold Project.
“Our first-ever round of diamond drilling at Paris last year returned a bonanza intersection of 1.2 metres at 185 g/t gold, within a broader intercept of 35 metres at 14.12 g/t gold from 157.85 metres.
“Moreover, Torque reported spectacular drilling success in 2023 with high-grade gold intercepts along the 2.5-kilometre strike spanning from the historical Paris pit to the Observation prospect. We look forward to realising the great upside along this vast gold-rich corridor.”
Drill for equity deal
"I am delighted to announce our agreement with Topdrill, who share our optimism for the great upside that could be unlocked through drilling at both Paris and New Dawn,” Moreno continued.
“We welcome Topdrill to our register of shareholders and thank them for their support in what is a challenging market for junior explorers.
“I would like to thank the strong support provided by our joint lead managers and their investor clients, and welcome new investors to the register.”
The agreement with Topdrill allows Torque to satisfy up to 100% of the drilling costs invoiced by Topdril by the issue of ordinary Torque shares up to a maximum of $500,000.