Torq Obtains C$3 Million Credit Facility
InvestorSarfari Comments:
Exploration companies survive on the ability to access funds in order to execute business plans. In this case it’s for Torq to continue drilling and exploring, made all the more exciting with their recent Margarita discovery.
In our last comment, we asked who in the audience might be watching? Well today we received an answer. Someone was indeed watching. And liking what they saw - to the tune of $3 million dollars.
What’s also interesting is that there are approximately 4,3 million warrants, which if exercised, will fill the coffers with another $3 million. Overall a very fair agreement for both parties. Let’s see who else might be watching? (aside from you, of course!)
VANCOUVER, BC / ACCESSWIRE / June 23, 2022 / Torq Resources Inc. (TSXV:TORQ)(OTCQX:TRBMF) ("Torq" or the "Company") announces that it has obtained a commitment from an arms-length lender to provide a C$3 million two-year credit facility of which $500,000 will be advanced to the Company immediately. Amounts drawn under the facility are subject to 9% pa interest. In consideration for the grant of the facility, the Company has agreed to pay the lender, 191010 Investments Limited, an entitywhich is affiliated with a current shareholder, a 1% commitment fee and issue 4,347,826 share purchase warrants exercisable at C$0.69 per common share for a two-year period.
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. Furthermore, 1,449,274 warrants are subject to the additional restriction that they may only be exercised pro rata to the extent the additional $2.5 million available under the credit facility is actually drawn. All warrants and shares issuable on exercise of the 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/706418/Torq-Obtains-C3-Million-Credit-Facility