Torque Metals has raised A$4.25m ($2.77m) through a share placement and a drill-for-equity agreement, gearing up for imminent drilling programmes at its New Dawn Lithium Project and Paris Gold Project in Western Australia (WA).

The company announced firm commitments to raise A$3.75m by issuing around 28.85 million shares at A$0.13 each.

The enthusiastic response from existing shareholders and high-net-worth individuals led to an oversubscription of the offer.

Torque's directors have collectively committed A$65,000 to the placement.

Additionally, the drill-for-equity deal with Topdrill will allow Torque to cover up to A$500,000 of drilling costs by issuing new shares, utilising its LR7.1 capacity.

The funds raised are earmarked for expanding exploration efforts and producing a maiden mineral resource estimate at the New Dawn project.

At the Paris Gold Project, the company plans to conduct deeper diamond drilling following up on high-grade results and produce a resource estimate and exploration target.

Torque managing director Cristian Moreno said: “We have made great strides on our New Dawn Lithium Project over the short time since we acquired the project, and Torque’s confidence builds that New Dawn will ultimately present a great development opportunity.

“Our core objectives right now are to test more widely across the Mining Licences where a number of pegmatites present new drill targets. Infill drilling around the known mineralisation will assist in the conversion of our exploration target to a JORC Mineral Resource Estimate.

"I am delighted to announce our agreement with Topdrill, who shares our optimism for the great upside that could be unlocked through drilling at both Paris and New Dawn. We welcome Topdrill to our register of shareholders and thank them for their support in what is a challenging market for junior explorers.”

Earlier this year, Torque completed the acquisition of a package of tenements, dubbed the Penzance Exploration Camp, in WA's Goldfields.