Torq Amends C$3 Million Credit Facility
InvestorSarfari Comments:
The executives at TORQ have decided to take a $2 Million advance immediately vs the $500K in the original news release. There is a 9% annual interest fee and also, 3,333,333 million purchase warrants at $0.60. Based on statements from a recent interview of Shawn Wallace, the funds are likely devoted to more drilling activity and test results. This seems to be the focus for the remainder of the year.
VANCOUVER, BC / ACCESSWIRE / July 11, 2022 / Torq Resources Inc. (TSX-V:TORQ)(OTCQX:TRBMF) ("Torq" or the "Company") announces that it has agreed to amend the C$3 million two-year credit facility announced June 23, 2022. Under the amended terms, $2,000,000 will be advanced to the Company immediately on execution of the amended credit facility agreement. Amounts drawn under the facility are subject to 9% annual interest. In consideration for the grant of the facility, the Company has agreed to pay the lender, 191010 Investments Limited,an entity which is affiliated with a current shareholder 3,333,333 share purchase warrants exercisable at C$0.60 per common share for a two-year period based on the initial $2 million advance. Additional warrants for 100% coverage will be issued at the time of any future draw down of the remaining $1 million with warrants priced at the market price at the time.
The warrants are subject to an exercise limitation which limits the exercise to circumstances where the total holding of Torq voting securities owned or controlled by the lender and its joint actors, including any convertible securities exercisable within 60 days, to 9.99% of the Company's then issued voting securities. All warrants and shares issuable on exercise of the share purchase warrants are subject to a four-month hold period in Canada. The facility will be secured by a general security agreement and is subject to customary loan covenants. Completion of the credit facility is subject to execution of a definitive agreement and TSX Venture approval. There are no finder's or broker's fees.
ON BEHALF OF THE BOARD,
Shawn Wallace
CEO & Chair
View source version on accesswire.com: https://www.accesswire.com/708107/Torq-Amends-C3-Million-Credit-Facility