Torq Amends C$3 Million Credit Facility

Rhea-AI Summary

Torq Resources Inc. (OTCQX:TRBMF) has amended its C$3 million credit facility, initially announced on June 23, 2022. The amendment allows for an immediate advance of C$2 million with a 9% annual interest rate. In exchange, the company will issue 3,333,333 warrants at C$0.60 per share, exercisable over two years. Additional warrants will be provided upon future drawdowns. This facility is secured and subject to standard covenants, pending the execution of a definitive agreement and TSX Venture approval.

Positive

• Immediate C$2 million advance to strengthen liquidity.
• Issuance of 3,333,333 warrants at C$0.60 provides potential for capital uplift.

Negative

• Dependence on additional funding from the remaining C$1 million drawdown.
• Warrants limit the lender's voting power to 9.99% which may restrict future capital structure flexibility.

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

For further information on Torq Resources, please visit torqresources.com or contact Natasha Frakes, Vice President of Corporate Communications at (778) 729-0500 or info@torqresources.com.

About Torq Resources

Torq is a Vancouver-based copper and gold exploration company with a portfolio of premium holdings in Chile. The Company is establishing itself as a leader of new exploration in prominent mining belts, guided by responsible, respectful and sustainable practices. The Company was built by a management team with prior success in monetizing exploration assets and its specialized technical team is recognized for their extensive experience working with major mining companies, supported by robust safety standards and technical proficiency. The technical team includes Chile-based geologists with invaluable local expertise and a noteworthy track record for major discovery in the country. Torq is committed to operating at the highest standards of applicable environmental, social and governance practices in the pursuit of a landmark discovery. For more information, visit www.torqresources.com.

Forward Looking Cautionary Statement

This release includes certain statements that may be deemed "forward-looking statements". Forward-looking information is information that includes completion of the credit facility statements. There are completion uncertainties and risks involved in the Company being able to reach a definitive credit agreement and in obtaining TSX Venture Exchange acceptance. See Torq's public filings at www.sedar.com for disclosure of the risks and uncertainties faced by the Company.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Torq Resources Inc.

View source version on accesswire.com:
https://www.accesswire.com/708107/Torq-Amends-C3-Million-Credit-Facility

FAQ

What is the recent credit facility amendment for Torq Resources (TRBMF)?

Torq Resources amended its C$3 million credit facility to receive an immediate advance of C$2 million with 9% interest.

How many warrants did Torq Resources issue as part of the credit facility?

Torq Resources issued 3,333,333 share purchase warrants at C$0.60 per share.

What is the maturity timeframe for the amended credit facility of Torq Resources?

The credit facility is a two-year agreement.

What are the key terms regarding the warrants issued by Torq Resources?

The warrants are exercisable at C$0.60 per share for two years, and additional warrants will be issued for future drawdowns.

What are the potential risks for Torq Resources related to the credit facility?

There are uncertainties in completing the credit agreement and obtaining TSX Venture approval, which may pose funding risks.