Torq Amends Margarita Option to Defer Payments

Rhea-AI Summary

Torq Resources Inc. (TSXV:TORQ)(OTCQX:TRBMF) has amended its Margarita Project Unilateral Option Agreement, extending the option by one year and deferring the August 22, 2024 payment of USD $1,200,000. The amendment includes:

1. Increasing the August 22, 2025 payment to USD $1,500,000 (+$300,000)
2. Increasing the August 22, 2026 payment to USD $2,200,000 (+$200,000)
3. Requiring USD $1,000,000 in exploration before August 22, 2025
4. Requiring an additional USD $1,000,000 in exploration before August 22, 2026

CEO Shawn Wallace stated that this deferral, along with the recently announced Gold Fields Option and Joint Venture for the Santa Cecilia Project, will provide significant financial relief for the company's payment and capital expenditure requirements.

Positive

• Extension of Margarita Project option by one year, providing more time for exploration
• Deferral of USD $1,200,000 payment due August 22, 2024, improving short-term cash flow
• Recently announced Gold Fields Option and Joint Venture for Santa Cecilia Project, potentially reducing financial burden

Negative

• Increased total payment obligations for Margarita Project (additional USD $500,000)
• New exploration expenditure requirements of USD $2,000,000 over two years
• Acknowledgment of 'difficult junior explorer market conditions' by CEO

VANCOUVER, BC / ACCESSWIRE / August 14, 2024 / Torq Resources Inc. (TSXV:TORQ)(OTCQX:TRBMF) ("Torq" or the "Company") announces that it has agreed to an amendment of its November 18, 2020 Margarita Project Unilateral Option Agreement to extend the option by one year and to defer the August 22, 2024 payment of USD $1,200,000 for one year. Under the terms of an amending agreement dated August 5, 2024, an additional USD $300,000 (to a total of USD $1,500,000), was added to the August 22, 2025 option payment and an increase of USD $200,000 (to a total of USD $2,200,000) was added to the August 22, 2026 payment requirement.

In addition, Torq is required to expend at least USD $1,000,000 in exploration before August 22, 2025 and an additional USD $1,000,000 (to a total of USD $2,000,000) in exploration before August 22, 2026.

The new schedule of remaining earn in requirements is summarized as follows:

Shawn Wallace, Executive Chair and CEO commented, "We appreciate the cooperation of the Margarita Project owners for allowing the deferral of certain near-term option obligations. The deferral of these obligations coupled with the recently announced Gold Fields Option and Joint Venture for the Santa Cecilia Project will give the Company significant financial relief from its payment and capital expenditure requirements.

With Santa Cecilia proposed to be financed by virtue of the Option and Joint Venture, it should prove much less onerous to continue financing and exploring the Margarita Project. Both deals will allow the Company and its partners to unlock the potential for both of these exciting projects in a sustainable and accretive manner. We are looking forward to getting back to active exploration work in the months to come despite the current difficult junior explorer market conditions."

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 is information that includes implied future performance and/or forecast information including information relating to, or associated with cost reductions, potential future financings and exploration and or development of mineral properties. 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 from any future results, performance or achievements expressed or implied by such forward-looking statements. See Torq's public filings at ww.sedar.com for disclosure of the risks and uncertainties faced in the exploration business which is inherently a high-risk 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 changes were made to Torq Resources' Margarita Project option agreement?

Torq Resources amended the Margarita Project option agreement to extend it by one year, defer the August 2024 payment of $1.2 million, increase future payments, and add exploration expenditure requirements.

How much additional exploration spending is required for the Margarita Project under the new agreement?

Torq Resources is required to spend an additional USD $2,000,000 on exploration for the Margarita Project, with $1,000,000 due before August 22, 2025, and another $1,000,000 before August 22, 2026.

How does the Gold Fields Option and Joint Venture for Santa Cecilia affect Torq Resources (TRBMF)?

The Gold Fields deal for Santa Cecilia is expected to provide Torq Resources with significant financial relief from payment and capital expenditure requirements, making it easier to finance and explore the Margarita Project.

What is the new payment schedule for Torq Resources' (TRBMF) Margarita Project option?

The new schedule includes a payment of USD $1,500,000 due on August 22, 2025, and USD $2,200,000 due on August 22, 2026, both amounts increased from the original agreement.