Torque Metals Limited (ASX: TOR), a high-grade gold explorer focused on its significant district-scale land position in the Tier-1 South Kalgoorlie mining district of Western Australia, has successfully secured A$25 million through a targeted institutional placement. The company is particularly focused on the exploration and development of its Ritz Gold Project, which currently holds a Mineral Resource Estimate of 351,000 ounces at 3.1g/t gold. This significant capital injection comes from leading, resource specialist international and domestic institutions, endorsing Torque’s strategy to rapidly grow its high-grade gold inventory and unlock the broader potential of its landholdings.
The placement involved the issue of approximately 131.6 million new fully paid ordinary shares at an offer price of A$0.19 per share. This price represented a discount of approximately 7.3% to the last closing price and 4.4% to the 15-day volume-weighted average price prior to the announcement. Following the completion of the placement, Torque Metals is set to be well-funded with a pro-forma cash position of approximately A$32.7 million, combining the A$25 million raised with its existing cash reserves.
Proceeds from the placement will underpin Torque’s recently announced Project RPM strategy, which targets a Rapid Path to One Million Ounces. The funds are earmarked for an expanded exploration campaign at the Ritz Gold Project, including extensive extensional and in-fill drilling across key deposits to expand the current Mineral Resource Estimate and increase geological confidence. Furthermore, the capital will facilitate the testing of a strong pipeline of regional exploration targets across Torque’s South Kalgoorlie Gold Camp, ongoing geophysical DHEM surveys, and investments in infrastructure and equipment to support accelerated exploration. General working capital, operating activities, corporate, and transaction costs will also be covered.
Torque Metals’ Managing Director and CEO, Craig Jones, expressed delight with the strong support, stating that the A$25 million raising provides the financial capacity to execute their aggressive growth strategy. He highlighted the immediate priority to accelerate drilling around existing deposits and significantly expand regional exploration efforts across the largely under-explored South Kalgoorlie Gold Camp, aiming for an exciting period of consistent drilling and strong news-flow.
