WA gold explorer, Torque Metals has decided to jump from the Sydney Stock Exchange, or “SSX” and make the leap onto the Australian Stock Exchange, or “ASX” in the pursuit of easier access to an increasing flow of equity funds. Shareholders recently gave the Perth-based company the nod to effect the SSX delisting and undertake a capital raise of between $5 million and $7 million as the springboard for a listing on the primary bourse in the first half of 2021.
Broking firm Euroz Hartleys has been given the mandate as lead manager for the IPO that is planned to float 25 million Torque shares at $0.20 a pop under the minimum $5 million raising scenario and 35 million shares at $0.20 each for the maximum $7 million. The company says its approximate total issued capital structure will settle at either 60 million or 70 million shares once the company lists.
Euroz Hartleys has also agreed to raise $450,000 in seed capital to provide the necessary funds to cover listing costs and working capital.
Torque’s asset portfolio has not altered much in the six months since it listed on the SSX. The historic Paris gold project in Western Australia’s Coolgardie goldfields, which the company picked up last year, continues to be a key focus.
Previous owners of Paris mined two small open pits down to about 40 metres over eight months in 2016 and 2017 to produce 18,232 ounces of gold from oxide ore averaging about 4 grams per tonne.
An independent geologist’s report in Torque’s SSX prospectus showed that in 1989, Paris also delivered 24,000 ounces of gold to Julia Mines from ore that went a bonanza recovered grade of 11.2 g/t.
According to Torque, Paris hosts a remnant indicated resource of 314,000 tonnes at an average grade of 3.23 g/t for 32,700 ounces of contained gold.
The Paris tenure, approximately 100 kilometres south-south-east of Kalgoorlie, consists of nine granted mineral licences and two prospecting licences spanning a total of about 68 square kilometres.
In addition, Torque has the right to earn up to an 80 per cent stake in the Jindalee tenements, which are contiguous with the eastern and southern borders of the Paris project landholdings.
Late last year the company struck a farm-out joint-venture deal over one of the Jindalee properties with a wholly owned subsidiary of SensOre called Yilgarn Exploration Ventures. The latter can earn a 51 per cent interest in the exploration licence application area by spending $3 million on exploration across three years, with agreed minimum expenditures of $300,000 in the first year and $700,000 in year two.
This joint venture fits well with Torque’s plans for the Paris project. Initial high-risk exploration costs will be carried, to a degree, by Yilgarn, allowing Torque to utilise its (IPO) funds to advance the resource expansion drill-out program on its granted mining leases.
Torque says its SSX listing came during a difficult period for resources company listings on the ASX, however, “market conditions have changed considerably since that time and valuable equity capital has become much more widely available. That capital is demonstrably easier to access via an ASX listing”.
The company acknowledged the SSX as a “genuine incubation exchange” offering a listing option for start-up companies through its lower entry thresholds and cost structures.
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