Torque woes

In case anybody didn't get Bob McNeils email, here's the bit that hurts!

22 January 2015 a Receiver and Manager (O’Brien Palmer of Sydney) was appointed to Torque’s Stormont Project Joint Venture partner BCD Resources N.L.

Torque has been in dispute with BCD for some time now as to their conduct of the management of the above Joint Venture. In addition to the conduct of the Joint Venture we dispute some of the costs that BCD have ascribed to the Joint Venture. BCD, although mining and processing approximately 100,000t of ore at 3.2g/t gold, have maintained that the project operated at a loss. Torque had requested a dispute resolution meeting to be held in mid/late February, but in the present circumstances this is unlikely to occur. Torque is also in dispute with BCD over claims and warranties made/given by BCD in the Joint Venture Agreement. For example, BCD claimed an indicative processing cost for Stormont ore at its Beaconsfield processing facility would be $30t of dry ore. BCD have now maintained, and are attempting to cost to the Joint Venture, a processing cost which could exceed $50/t of dry ore.

With the appointment of a Receiver/Manager it is difficult to predict what will happen in regard to the Stormont Joint Venture. It is however obvious that no funds will flow to Torque from the Joint Venture in the foreseeable future.

Legal action has been contemplated but so far not initiated. Torque is in a very precarious financial situation. At present Torque is being “kept alive” by loans from myself – approximately $150,000 to date.

So there you have it, it is confirmed we'll get SFA from our broke Tassie JV partner who it would seem have kept some of our cash themselves while attempting to stay afloat .........