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Torq Announces USD$1.81 (CAD$2.49) Million Interim Loan Facility from Gold Fields for Santa Cecilia Project

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Torq Resources Inc. (TSXV:TORQ)(OTCQB:TRBMF) has secured an interim loan and facility agreement with Gold Fields affiliate. The agreement includes:

1. A USD$1.81 million (CAD$2.49 million) loan to be drawn in tranches.
2. An immediate USD$600,000 (CAD$826,260) payment for the Santa Cecilia copper-gold project in Chile.
3. Additional credit facility of up to USD$1.21 million (CAD$1.66 million) for project development.

This loan bridges the period until Torq and Gold Fields finalize their option and joint venture agreement, allowing Gold Fields to acquire up to 75% interest in Santa Cecilia for USD$48 million in project spending. The agreement requires approval from Torq's disinterested shareholders at a meeting expected in December 2024 or January 2025.

Torq Resources Inc. (TSXV:TORQ)(OTCQB:TRBMF) ha ottenuto un prestito provvisorio e un accordo di finanziamento con un'affiliata di Gold Fields. L'accordo include:

1. Un prestito di 1,81 milioni di dollari USA (2,49 milioni di dollari CAD) da prelevare in tranche.
2. Un pagamento immediato di 600.000 dollari USA (826.260 dollari CAD) per il progetto di rame-oro Santa Cecilia in Cile.
3. Un ulteriore linea di credito fino a 1,21 milioni di dollari USA (1,66 milioni di dollari CAD) per lo sviluppo del progetto.

Questo prestito copre il periodo fino a quando Torq e Gold Fields finalizzeranno il loro accordo di opzione e joint venture, consentendo a Gold Fields di acquisire fino al 75% di interesse in Santa Cecilia per 48 milioni di dollari USA in spese di progetto. L'accordo richiede l'approvazione da parte degli azionisti non interessati di Torq durante un incontro previsto per dicembre 2024 o gennaio 2025.

Torq Resources Inc. (TSXV:TORQ)(OTCQB:TRBMF) ha conseguido un préstamo temporal y acuerdo de financiamiento con una afiliada de Gold Fields. El acuerdo incluye:

1. Un préstamo de 1,81 millones de USD (2,49 millones de CAD) que se desembolsará en tramos.
2. Un pago inmediato de 600,000 USD (826,260 CAD) para el proyecto de cobre-oro Santa Cecilia en Chile.
3. Una línea de crédito adicional de hasta 1,21 millones de USD (1,66 millones de CAD) para el desarrollo del proyecto.

Este préstamo cubre el periodo hasta que Torq y Gold Fields finalicen su acuerdo de opción y joint venture, permitiendo a Gold Fields adquirir hasta el 75% de interés en Santa Cecilia por 48 millones de USD en gastos del proyecto. El acuerdo requiere la aprobación de los accionistas desinteresados de Torq en una reunión que se espera para diciembre de 2024 o enero de 2025.

Torq Resources Inc. (TSXV:TORQ)(OTCQB:TRBMF)는 Gold Fields의 자회사와 중간 대출 및 금융 계약을 체결했습니다. 계약에는 다음이 포함됩니다:

1. 181만 달러 미국 (249만 달러 캐나다)의 대출이 분할 인출됩니다.
2. 칠레의 산타 세실리아 구리-금 프로젝트를 위한 600,000 달러 미국 (826,260 달러 캐나다)의 즉시 지급.
3. 프로젝트 개발을 위한 121만 달러 미국 (166만 달러 캐나다)의 추가 신용 시설.

이 대출은 Torq와 Gold Fields가 옵션 및 합작 투자 계약을 최종 확정할 때까지의 기간을 연결해 주며, Gold Fields는 프로젝트 비용으로 4800만 달러 미국에 산타 세실리아에서 최대 75%의 지분을 인수할 수 있습니다. 이 계약은 Torq의 비관여 주주들의 승인이 필요하며, 회의는 2024년 12월 또는 2025년 1월로 예상됩니다.

Torq Resources Inc. (TSXV:TORQ)(OTCQB:TRBMF) a obtenu un prêt intérimaire et un accord de financement avec une filiale de Gold Fields. L'accord comprend :

1. Un prêt de 1,81 million USD (2,49 millions CAD) à tirer par tranches.
2. Un paiement immédiat de 600 000 USD (826 260 CAD) pour le projet de cuivre-or Santa Cecilia au Chili.
3. Une facilité de crédit supplémentaire allant jusqu'à 1,21 million USD (1,66 million CAD) pour le développement du projet.

Ce prêt comble la période jusqu'à ce que Torq et Gold Fields finalisent leur accord d'option et de joint venture, permettant à Gold Fields d'acquérir jusqu'à 75 % d'intérêt dans Santa Cecilia pour 48 millions USD de dépenses de projet. L'accord nécessite l'approbation des actionnaires désintéressés de Torq lors d'une réunion prévue en décembre 2024 ou janvier 2025.

Torq Resources Inc. (TSXV:TORQ)(OTCQB:TRBMF) hat einen vorläufigen Kredit- und Finanzierungsvertrag mit einem Tochterunternehmen von Gold Fields gesichert. Der Vertrag umfasst:

1. Ein Kredit von 1,81 Millionen USD (2,49 Millionen CAD), der in Tranchen abgerufen wird.
2. Eine sofortige Zahlung von 600.000 USD (826.260 CAD) für das Kupfer-Gold-Projekt Santa Cecilia in Chile.
3. Eine weitere Kreditlinie von bis zu 1,21 Millionen USD (1,66 Millionen CAD) für die Projektentwicklung.

Dieser Kredit überbrückt die Zeit bis Torq und Gold Fields ihr Optionen- und Joint-Venture-Abkommen abschließen, was es Gold Fields ermöglicht, bis zu 75% Anteil an Santa Cecilia für 48 Millionen USD an Projektkosten zu erwerben. Der Vertrag erfordert die Genehmigung der nicht interessierten Aktionäre von Torq in einer Sitzung, die für Dezember 2024 oder Januar 2025 erwartet wird.

Positive
  • Secured USD$1.81 million (CAD$2.49 million) interim loan facility from Gold Fields
  • Enables USD$600,000 (CAD$826,260) option payment for Santa Cecilia project
  • Additional credit facility of up to USD$1.21 million (CAD$1.66 million) for project development
  • Potential partnership with Gold Fields to acquire up to 75% interest in Santa Cecilia for USD$48 million in project spending
Negative
  • Loan accrues interest at 9% per annum from the date of advance
  • Loan becomes due if Implementation Agreement is not entered by November 15, 2024
  • Shareholder approval required for the Earn-in Option, introducing uncertainty

VANCOUVER, BC / ACCESSWIRE / October 18, 2024 / Torq Resources Inc. (TSXV:TORQ)(OTCQB:TRBMF) ("Torq" or the "Company") is pleased to announce that it has entered into an interim loan and facility agreement with an affiliate of Gold Fields Limited ("Gold Fields").Advances up to an aggregate amount of US$1,810,000 currently approximately (CAD$2,492,000) (the "Loan") will be drawn in tranches and will enable Torq to make an underlying option agreement payment of US$600,000 currently approximately (CAD$826,260) required for its Santa Cecilia copper-gold project in Chile and to advance the exploration and development of the project in accordance with programs approved by Gold Fields during the remainder of 2024. The Loan is to be funded in an immediate amount of US$600,000 currently approximately (CAD$826,260) with an additional credit facility allowing Torq to draw-down further amounts to a maximum additional amount of US$1,210,000 currently approximately (CAD$1,666,000) to advance the approved programs ("Facility").

The Loan is intended to bridge the period until Torq and Gold Fields complete the option and joint venture agreement ("Earn-inOption") announced August 1, 2024. Under the Earn-in Option, Gold Fields is to be granted a staged option to acquire up to a 75% interest in the Santa Cecilia project in exchange for incurring an aggregate of US$48 million in spending at the project over a maximum of 6 years. Torq and Gold Fields are presently negotiating the definitive agreement required to implement the Earn-in Option (the "Implementation Agreement") and other related agreements. Once the Implementation Agreement is executed, the Earn-in Option will be subject to the approval of a majority of votes cast by disinterested Torq shareholders at a combined annual and special meeting expected to be convened in December 2024 or January 2025. Gold Fields is currently the owner of 20,678,020 common shares, representing 14.87% of Torq's outstanding common shares (with potential to increase its ownership position to up to 16.18% of Torq shares through the exercise of warrants) and these shares will not be voted at the meeting.

The Loan will be advanced to Torq's Chilean subsidiary, Minera Santa SpA, which owns the Santa Cecilia project option and will be reflected by promissory notes to Gold Fields. The Loan will be guaranteed by Torq Resources Chile SpA ("Torq Chile"), a Chilean subsidiary of Torq and the parent of Minera Santa SpA. The Loan will be secured by a pledge by Torq Chile of the shares of Minera Santa SpA. Assuming that Torq shareholders approve the Earn-in Option, the Loan amounts will form part of Gold Field's initial commitment of USD$6 million to earn 10% of Santa Cecilia. If the Implementation Agreement is not entered into by November 15, 2024, all principal and accrued interest will become due and payable on February 15, 2025. If the Implementation Agreement is entered into but the disinterested shareholders do not approve the Earn-in Option at the shareholder meeting, the Loan will become due and payable on the one-year anniversary of the shareholder meeting. If either the Implementation Agreement is not executed, or the Torq shareholder meeting is not held by the outside date of January 31, 2025, the Loan will become due and payable on January 31, 2026. All amounts advanced under the Loan will accrue interest at the rate of 9% per annum from the date of advance. Drawdown requests under the Facility may be made at any time prior to the occurrence of any of the following events after which Gold Fields will have no obligation to make further advances: (i) if the Implementation Agreement is not entered into by November 15, 2024, (ii) if the Torq shareholder meeting is held prior to January 31, 2025 but Torq's shareholders do not approve the Earn-in Option, or (iii) if certain of the definitive agreements are not executed, or the Torq shareholder meeting has not been held, by the outside date of January 31, 2025.

The Santa Cecilia mineral exploration project is a 3,250-hectare property located approximately 100km east of the city of Copiapo, Chile, in the southern region of the world-class Maricunga belt and immediately north of the El Indio belt.

Because Gold Fields is a "related party" to the Company, as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") the Loan and Facility will constitute a "related party transaction" under MI 61-101 that is exempt from the MI 61-101 valuation and minority shareholder approval requirements on the basis of Torq's status as a TSX Venture listed company and the Loan being a cash-for-securities transaction under CAD$2.5 million. The Loan has received conditional TSX Venture Exchange acceptance. The Earn-in Option will likewise be a "related party transaction" under MI 61-101 and will be subject to disinterested shareholder approval under MI 61-101 and separate approval by the TSX Venture Exchange. Additional details regarding the Loan will be included in a material change report to be filed by Torq on SEDAR+ (the "MCR"). Torq discloses under Section 5.2(2) of MI 61-101 that it was not possible or reasonable for Torq to file the MCR at least 21 days in advance of the initial Loan draw-down as such initial proceeds of the Loan are required to fund the US$600,000 payment due under the underlying option agreement on October 21, 2024. The Loan has been unanimously approved by the board of directors of Torq.

A Message from Shawn Wallace, CEO & Chair:
"We have been working with Gold Fields on Santa Cecilia since we acquired the asset and are appreciative of this bridge loan which secures our option and gives us time to complete the Earn-in Option agreement"

ON BEHALF OF THE BOARD,

Shawn Wallace
CEO & Chair

For further information on Torq Resources, please visit www.torqresources.com or contact the company 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 Information
This release includes certain statements that may be deemed "forward-looking statements". Forward-looking information in this release includes statements that relate to the entry into of definitive agreements with respect to the loan and the joint venture on the Santa Cecilia Project with Gold Fields and the terms thereof and timing therefor, as well as the prospectivity of the Santa Cecilia and Margarita projects for development. These statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different (either positively or negatively) from any future results, performance or achievements expressed or implied by some of the principal forward-looking statements. See Torq's Annual Information Form filed April 29, 2024, at www.sedarplus.ca for disclosure of the risks and uncertainties faced in this business.

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 the original press release on accesswire.com

FAQ

What is the total value of the loan facility Torq Resources (TRBMF) secured from Gold Fields?

Torq Resources (TRBMF) secured a total loan facility of USD$1.81 million (approximately CAD$2.49 million) from Gold Fields.

What is the purpose of the USD$600,000 immediate payment for Torq Resources (TRBMF)?

The USD$600,000 immediate payment is for Torq Resources (TRBMF) to make an underlying option agreement payment required for its Santa Cecilia copper-gold project in Chile.

What percentage interest can Gold Fields acquire in Torq Resources' (TRBMF) Santa Cecilia project?

Gold Fields can acquire up to a 75% interest in Torq Resources' (TRBMF) Santa Cecilia project in exchange for incurring USD$48 million in spending over a maximum of 6 years.

When is the shareholder meeting expected for Torq Resources (TRBMF) to approve the Earn-in Option?

The shareholder meeting for Torq Resources (TRBMF) to approve the Earn-in Option is expected to be convened in December 2024 or January 2025.

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