Toro Energy Reports Quarterly Results

Toro Energy Ltd. (ASX:TOE,OTCMKTS:TOEYF) announced its quarterly results for the period ending June 30, which included an update on its Wiluna uranium project as well as the company’s financial activity during the second quarter. The results also showed that Toro’s cash total at the end of this period was AU$22.9 million.
Highlights:

• Agreement with The Sentient Group to re-finance the Company’s $12M loan with Macquarie Bank Limited including completion of a $2.5M placement at 8 cents per share, strengthening Toro’s balance sheet and working capital position.
• Government assessment process continued for the Extension to the Wiluna Uranium Project (mining of the Millipede and Lake Maitland deposits). Toro met its timetable commitments to the Office of the Environmental Protection Authority with lodgement of the first draft of the Public Environmental Review.
• Completion of 130 sonic drill hole resource drilling at Centipede, Millipede, Lake Maitland and Nowthanna deposits.
• Continued focus on project financing, equity partners and offtake discussions including further meetings with major Indian industry figures through Toro Managing Director Dr. Vanessa Guthrie’s participation in the India-Australia CEO Forum held in Delhi and Mumbai in June.
• Uranium spot price closed at US$36.50/lb at June 30 2015, down from US$39.50/lb at end March 2015. Long term prices retreated from US$49/lb in March 2015 to US$46.00/lb at June 30 2015.
• Cash at end of the quarter was A$22.9M.

As quoted in the press release:

In June Toro signed a binding Terms Sheet with its shareholder The Sentient Group (“Sentient”) that will enable Toro to repay the $12M loan owing to Macquarie Bank Ltd (“Macquarie Loan”) approximately nine months ahead of its maturity. The Macquarie Loan is to be repaid with funds sourced from:

• $6.0M secured, interest free loan from Sentient, maturing in 3 years (“Sentient Loan”)
• $2.5M placement at 8 cents per share as part of the transaction announced on 3 November 2014 (2014 Sentient Transaction);
• $3.0M released from the $10M Unitisation Deed funds received from Sentient under the 2014 Sentient Transaction; and
• $0.5M of existing working capital.
• The binding Terms Sheet includes the issue of the 59.1 million shares to complete the acquisition from Sentient of various uranium investments including secured loans in Canadian-based Strateco Resources (“Strateco”) pursuant to the 2014 Sentient Transaction. Strateco is the owner of the Matoush Uranium Project in Quebec.

Click here to read the full Toro Energy Ltd. (ASX:TOE,OTCMKTS:TOEYF) press release.