- Torian Resources (TNR) secures funding to settle the Tarmoola Station purchase
- TNR announced the purchase earlier this year and it hopes the acquisition will help fast-track further exploration at its Mt Stirling Gold Project
- RiverFort has provided $3.27 million of interim funding while TNR’s executive directors and chief financial officer have provided around $1.7 million of personal shares
- Torian closed down 3.70 per cent and is trading at 2.6 cents per share
Torian Resources (TNR) has secured funding to settle the Tarmoola Station purchase.
The company announced the purchase earlier this year and it hopes the acquisition will help fast-track further exploration at its Mt Stirling Gold Project.
RiverFort has provided $3.27 million of interum funding to help with the purchase.
Additionally, Torian’s executive directors and chief financial officer have provided around $1.7 million of personal shares as collateral to secure the agreement.
Over the past few months the company has had numerous discussions with various lenders, including major banks.
However, according to the company, due to the fact it is an exploration company the banks wanted Torian to demonstrate that Tarmoola would be able to stand on its own without financial support from Torian.
Torian is confident it can confirm this in the coming months and that it can roll over the current funding into more of a traditional loan.
Executive Director Peretz Schapiro said the station was the perfect fit for the company.
“The purchase of the Tarmoola Station is seen as a crucial step towards fast-tracking the exploration of, and potential mining production at, the Mt Stirling Gold Project,” he said.
“From a funding perspective, we have negotiated what we believe is the best deal for shareholders under the circumstances. We intend to repay RiverFort Capital in cash received from both the sale of the cattle as well as a refinancing arrangement.”
Tarmoola Station is a pastoral lease located around 25 kilometres northwest of Leonora, in Western Australia’s Goldfields region.
The station covers 172,662 hectares and is home to a number of operating and abandoned mines held by ASX-listed companies.
Tarmoola currently contains a 20-person camp with approvals in place as well as infrastructure already built to expand to a 50-person accommodation facility.
The purchase of the station and associated business also includes hard assets, such as machinery and vehicles that have been valued at more than $1.1 million.
Torian closed down 3.70 per cent and is trading at 2.6 cents per share.