I clearly have one in my inventory, but having just tried to fit it to Silverfish flag, it doesn't appear in the list of limited weapons to choose
Even if torpedoes are not allowed on the Silverfish, it should still be in the list greyed (redded!) out surely?
It's the same weight as existing Silverfish weapons, which hints it's meant to go on a Silverfish.
So what's going on?
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Could try fitting it to a fang and see how it goes
Similarly, you can't view normal weapons on a weapon slot that is underwater only, as it would only display torpedoes and the few submerged missiles we have.
You will need the 'underwater' slot in order to mount a torpedo.