- Gold explorer and developer Torian Resources has entered a A$1 million loan agreement with Carraway Corporate
- Torian will use the funds provided to further exploration at several of its current gold prospects
- The company intends to repay the principal and interest costs accrued over the loan’s terms by issuing Carraway 60 million shares at A$0.02 each.
- Shares in Torian were up 7.69 per cent on the ASX today, currently trading for 1.4 cents apiece at 2:50 PM AEDT
Gold explorer and developer Torian Resources has entered a A$1 million loan agreement with Carraway Corporate.
Torian will use the funds provided for further exploration at several of its current gold prospects.
The company has prioritised its current exploration plays and intends to finance testing at the Mt Stirling, Diorite, Mt Keith, Mt Pleasant and Mt Monger projects.
Carraway has provided the A$1 million loan facility to Torian under the following tranche conditions;
- $250,000 must be drawn down within 5 days of the loan’s execution;
- $250,000 must be drawn down within 5 days of Torian dispatching a notice of meeting seeking approvals in connection with the Loan Facility; and
- $500,000 must be drawn down on a best endeavours basis following shareholder approval.
Torian has advised the market it will pay Carraway seven per cent of the total revenue raised as a result of the loan.
The company intends to repay the principal and interest costs accrued over the loan’s terms by issuing Carraway 60 million shares in the company at A$0.02 each.
“This loan facility is a strong measure of support and commitment from the investment community in the company’s projects,” said Torian chairman Richard Mehan.
“This will enable Torian to undertake measured exploration activities at the Mt Stirling Project, testing targets along the Ursus fault outside of existing resources,” Richard continued.
The convertibility of the loan remains subject to stakeholder approval at the next shareholder meeting, which the company says it will announce to market in due course.
WA-based Torian Resources is currently exploring 11 gold prospects across Kalgoorlie and Lenora, where Torian’s main focus remains exploring its 90 per cent owned Mt Stirling gold tenement.
The prospect hosts two types of gold mineralisation across the northern and north-east corners. Total resources at the tenement are estimated at 50,279 ounces.
Shares in Torian were up 7.69 per cent on the ASX today, currently trading for 1.4 cents apiece at 2:50 PM AEDT. The company’s market cap is valued at just over A$4 million.