It seems this weapon may have a few problems with how it will do damage, and it looks to me as if it's going to have some sort of Afterburn since it is a blowtorch. Great job with the current stats, i think the Positive stats fit the weapon, though the negative stats only being reduced range and reduced ammo has me a bit stumped. The fact that it will be easy to spycheck makes me think this weapon will need to be quite balanced with it's positives AND negatives in order to be allowed in competitive play and many of TF2's custom servers. Stats for instance-

-50% afterburn time and damage (to counteract the increased attack speed)
-75% range (it IS a blowtorch, and they do not go very far..)
*-50% clip fits very well imo*

A decently low range and damage reduc to afterburn will make this item quite balanced in my opinion, though i'd love to hear what the creators believe and other opinions.