Torq Announces C$1.25 Million Financing and Loan Extension
Torq secures survival financing at rock bottom to avoid default, though the deal deepens dilution for existing shareholders.
Torq Resources Inc. announced a C$1.25 million non-brokered private placement priced at C$0.05 per unit. The financing is a strict condition for securing a six-month extension on a C$2.8 million loan from 191010 Investments Limited, which was originally due July 11, 2026. As consideration for the loan extension, the lender receives 56 million one-year warrants exercisable at C$0.05 per share.
The placement will issue a minimum of 25 million equity units, each consisting of one common share and one three-year warrant exercisable at C$0.10. A 6.0% finder's fee in cash and non-transferrable finder's warrants (equivalent to 6.0% of units sold) will be issued. Proceeds are designated for general working capital.
The transaction requires TSX Venture Exchange approval and carries a four-month hold period for the units, warrants, and underlying shares. Targeted closing is late August 2026.
Torq Resources Inc. (TORQ) secured a highly anticipated financing to address a precarious Q1 2026 cash position of C$0.99 million against C$5.95 million in current liabilities, a situation that carried an explicit going concern flag. The deal successfully averts an immediate default on a C$2.8 million loan, pushing the maturity date to early 2027.
The transaction involves severe dilution, with 25 million new shares plus 56 million loan-extension warrants and additional finder's warrants to be issued at a depressed price of C$0.05. This pricing aligns with the market’s valuation of the company near its liquidity floor, as evidenced by a trading range of C$0.05 to C$0.06 throughout June and July 2026.
The financing serves as a survival mechanism rather than a growth catalyst. While it maintains operational continuity, it does not resolve the underlying capital structure weakness or the upcoming C$3 million option payment due in October 2026.
Torq Resources Inc. (TORQ) is a pre-revenue junior explorer focused on the Santa Cecilia project in Chile's Maricunga belt. The project is immediately adjacent to Newmont/Barrick's Norte Abierto project. The company is advancing a district-scale copper-gold porphyry system, with three targets identified: Cerro del Medio, Pircas Norte, and Gemelos Norte. Historical drilling has returned long intercepts, including:
- 450m @ 0.51 g/t Au and 0.155% Cu at Gemelos Norte
- 206m @ 0.99 g/t Au at Pircas Norte
No mineral resource estimate has been defined, and the project remains in the exploration phase.