Torq Obtains C$3 Million Credit Facility

Rhea-AI Summary

Torq Resources Inc. (OTCQX: TRBMF) has secured a C$3 million two-year credit facility from an arms-length lender, with $500,000 available immediately. The facility incurs a 9% annual interest and includes a 1% commitment fee along with 4,347,826 share purchase warrants exercisable at C$0.69. The loan is secured by a general security agreement and is subject to customary covenants, pending TSX Venture approval. The warrants have specific exercise limitations and are subject to a four-month hold period.

Positive

• Secured a C$3 million credit facility, which strengthens cash flow.
• Immediate availability of $500,000 for operational needs.
• Warrants provide potential for future capital injection at favorable terms.

Negative

• Associated lender is affiliated with a current shareholder, raising potential conflicts of interest.
• Dependence on TSX Venture approval for facility completion adds uncertainty.

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

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/706418/Torq-Obtains-C3-Million-Credit-Facility

FAQ

What is the purpose of the C$3 million credit facility obtained by Torq Resources?

The credit facility aims to enhance cash flow and finance operational needs.

What are the terms of the credit facility for Torq Resources?

The facility comes with a 9% interest rate, a 1% commitment fee, and includes share purchase warrants.

How much of the credit facility will Torq Resources receive immediately?

Torq Resources will receive $500,000 immediately upon securing the facility.

What restrictions are placed on the share purchase warrants issued to the lender?

The warrants are exercisable only if the lender's total holdings do not exceed 9.99% of Torq's voting securities.

What is the significance of the lender's affiliation with a current shareholder?

It raises potential concerns about conflicts of interest in the lending process.