Torq Secures C$15 Million Strategic Investment from Gold Fields
InvestorSarfari Comments:
A partnership and a community agreement, all in one news release. First newsworthy item is: Gold Fields, a $7 BILLION USD company. They have injected $15 Million into TORQ at a premium - no less! The deal was gift-wrapped at $1/share which is 23% above the average closing price for the last couple of weeks. Goldfields obviously sees something here, otherwise why pay a premium?
Gold Fields didn’t suddenly decide in the wake of turbulent markets, that it’s just as wise to throw darts at a board of copper exploration plays, and perhaps, a winner like TORQ might get pinned for investment consideration. Carnival games have more chance of a win. Historically large mining companies such as Goldfields make VERY calculated decisions to ensure they have a firm grip on profit potential.
The mining sector is split into two main groups: Majors and Juniors. Juniors like TORQ are the true risk-takers. They are the adventurers - eager to explore uncharted territory with guts or glory results. This investor safari is not for the weak of heart.
Our analysis of TORQ from the start was one of cautious optimism (also we were unable to resist cheering the underdog nature of their story!) A little background digging reveals a solid team with a portfolio of historical mining successes. The management’s approach to risk is equally cautious, since they have significant personal investment in the company as well.
Major miners on the other hand, are in the business of mining. Period. They are less volatile and more “mature” with a focus on extracting dollars out of the ground. Extraction requires mucho bucks, which is why there’s very little tolerance for error. Majors are always on the lookout for grounded Juniors who can “show them the money.” Reminiscent classic college romance… of Junior continental backpacking for months after graduation, then marrying the Major after “finding themselves.” [insert appropriate gold-digger storyline here].
Clearly Gold Fields saw true potential in Torq Resources to justify courtship. Maybe this is just a fling. Maybe not. With the community agreement now in place for 7 years and the recent Chile referendum out of the way, chances lean toward TORQ being poised for a blissful future.
VANCOUVER, BC / ACCESSWIRE / September 6, 2022 / Torq Resources Inc. (TSX-V:TORQ, OTCQX:TRBMF) ("Torq" or the "Company") is pleased to announce a C$15 million non-brokered private placement with a wholly owned affiliate of NYSE listed international gold mining company, ("Gold Fields"), at a purchase price of C$1.00 per share. 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. The Company 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).
A Message from Shawn Wallace, CEO & Chair:
"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."
A Message from Chris Griffiths, CEO, Gold Fields:
"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."
Torq and Gold Fields have signed an investment agreement that, amongst other things:
Entitles Gold Fields to a pre-emptive right to maintain its ownership percentage, subject to certain conditions
Subjects Gold Fields to a customary share purchase standstill regarding increasing its position without approval from the Company, apart from customary release conditions such as a third-party bid or similar transaction
Creates an advisory technical committee of which Gold Fields will be a member
Binds Gold Fields to a voluntary one-year hold period and customary limits on share resales thereafter
Contains certain limited voting restrictions on Gold Fields' stock
Torq will primarily use the net proceeds for drilling at its Santa Cecilia gold-copper project in Chile's Maricunga belt, as well as for drilling at the Company's Margarita IOCG project in Chile's Coastal Cordillera belt. The private placement is expected to close on or about September 15, 2022 and is subject to customary TSX Venture Exchange approval and other customary closing conditions.
With respect to the strategic investment, Torq's financial advisor was Minvisory Corp., which will receive a customary success-based fee, and legal advisors were McMillan LLP. The legal advisors to Gold Fields were Fasken LLP.
ON BEHALF OF THE BOARD,
Shawn Wallace
CEO & Chair
View source version on accesswire.com: https://www.accesswire.com/714829/Torq-Secures-C15-Million-Strategic-Investment-from-Gold-Fields