Torq Resources Completes Extension of Credit Facility
Torq extends its loan to address liquidity pressures while issuing 56 million warrants to support its balance sheet.
Torq Resources Inc. has secured a six-month extension on its C$2.8 million credit facility with 191010 Investments Limited, moving the maturity date from July 11, 2026, to March 16, 2027. As part of the agreement, the lender received 56,000,000 share purchase warrants exercisable at $0.05 per share until September 16, 2027. These warrants include a 9.99% beneficial ownership blocker, which is waivable to 19.99% with approvals, and feature a reduction clause if the loan is prepaid before March 16, 2027.
The extension follows a C$1.7 million private placement closed on September 16, 2026, and a $529,116 debt settlement completed on October 1, 2026. The additional time provides the company with further runway to secure equity financing or alternative capital to repay the facility.
Torq Resources Inc. (TORQ) has secured a loan extension, a move necessary to address the company’s explicit going concern warning and severe liquidity constraints. While the arrangement prevents an immediate default, it carries a steep dilutive cost. As part of the deal, the company issued 56 million warrants at an exercise price of $0.05, a structure that significantly increases the fully diluted share count and creates a substantial overhang. The low exercise price suggests the lender’s confidence in a near-term price recovery or a forced conversion or financing event.
This development was anticipated following the August and September financing announcements, with the market likely having already priced in the need for additional capital and the associated dilution. The news is considered incremental and expected, extending the timeline for the company to execute its exploration program and secure further funding without altering its fundamental risk profile.
Torq Resources Inc. (TORQ) is an exploration-stage mining company focused on the Santa Cecilia project in Chile. The project is located on the Marunga Belt, adjacent to Newmont/Barrick's Norte Abierto operation, positioning it within a prominent mining district. The company targets gold, copper, and molybdenum.
Three phases of drilling have been completed, identifying district-scale gold-copper porphyry systems at Cerro del Medio, Pircas Norte, and Gemelos Norte. Drilling highlights include long intercepts of continuous mineralization, including:
- 557m of 0.38 g/t Au and 0.23% Cu
- 652m of 0.42 g/t Au and 0.134% Cu
The company reports grade increases in recent drilling, suggesting proximity to higher-grade intrusions.
Gold Fields Limited holds an option to earn a 75% indirect interest by funding a US$48 million exploration program. Gold Fields has earned 10% to date and committed to an US$11 million Stage 2 program.