TORONTO, ONTARIO--(Marketwire - Mar 28, 2013) -
(All amounts expressed in Canadian Dollars unless otherwise stated)
Torex Gold Resources Inc. (the "Company" or "Torex") (TXG.TO)(TXG.W.A) announced today its financial results for the fourteen months ended December 31, 2012 ("Fiscal 2012").
2012 REPORT HIGHLIGHTS
Advancement of the Morelos Gold Project
- Completed resource drilling program and a measured, indicated, and inferred mineral resource estimate for the El Limon and Guajes mineral deposits;
- Completed a feasibility study and related technical report for the El Limon and Guajes mineral deposits
- Proven and probable reserves at the Morelos Gold Project announced as 4.1 million ounces of gold
- Signed long-term land lease agreements with the Rio Balsas Ejido and the Real Del Limon Ejido in December 2011 and March 2012, respectively
- Drilled and tested the wells and received the water permit, which will allow a sufficient supply of water for the development and operation of the Morelos Gold Project
- Hired the senior operations team for the construction and operation phases
- Initial Engineering, Procurement, and Construction Management ("EPCM") activities started, including detailed engineering, procurement activities, tendering of early stage contracts and construction planning
Expanded the known mineralization through exploration
- Discovered gold-copper-silver mineralization over a 1.85 kilometre strike length and 1.0 kilometre width at the Media Luna target, south of the Balsas River
- Discovered gold-copper-silver mineralization of significant thickness at the Media Luna West target, south of the Balsas River
- Signed a five‐year exploration access agreement for all common use lands in the area, which provides access to the majority of the land for the new discoveries including Media Luna and Media Luna West and the prospective Todos Santos target
- Significant upgrading of the geological understanding of the mineralizing events south of the Balsas River
Strengthened our financial position
- Gross proceeds of $77.8 million were received in November 2011 from the exercise of warrants and compensation options
- Completed a $380 million bought deal financing, including partial over-allotment option exercise
- Executed an engagement letter for a US$250 million project finance facility
- Torex Gold Resources Inc. was added to the S&P/TSX Composite Index during the year
The net loss for Fiscal 2012 increased to $75.3 million compared with a net loss of $33.9 million for the twelve months ended October 31, 2011 ("Fiscal 2011"). Exploration and evaluation expenditures totalled $60.3 million for Fiscal 2012 compared to $24.7 million for Fiscal 2011. The Company's cash position increased by $364.9 million during Fiscal 2012 compared with a decrease of $26.5 million for Fiscal 2011. At December 31, 2012, the Company had $626.4 million in assets including $401.1 million of cash and had a working capital balance of $400.4 million compared with $249.9 million in assets including $36.2 million of cash and a working capital balance of $36.3 million as at October 31, 2011.
The Company has changed its fiscal year end from October 31 to December 31, effective as of December 31, 2012. Accordingly, for the new 2012 fiscal period, the Company has reported its annual consolidated financial statements for the fourteen month period ending December 31, 2012 compared to the twelve month period ended October 31, 2011.
A complete set of the Company's audited condensed consolidated Financial Statements and related Notes for Fiscal 2012 and Management's Discussion and Analysis will be posted on the Company's website at www.torexgold.com and will be filed on Sedar at www.sedar.com.
Torex is a well funded, growth-oriented, Canadian-based resource company engaged in the exploration and development of precious metal resources with a focus on gold. It owns 100% of the Morelos Gold Project, which is located 180 kilometres southwest of Mexico City in the highly prospective Morelos Gold Belt. Torex is aggressively exploring within its property to identify a pipeline of additional future economic deposits. The project covers an area of 29,000ha of which more than 75% remains unexplored.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to future exploration and development plans concerning the Morelos Gold Project, including expected drilling results and the timing within which the Company expects to receive drilling results, anticipated timing for the completion of information with respect to the Company's feasibility study and technical studies on the project. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "estimates", "intends", "anticipates" or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made at the date that such statements are made. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including the risk factors disclosed elsewhere in the Company's public disclosure. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purposes of assisting investors in understanding the Company's financial and operating performance and the Company's plans and objectives and may not be appropriate for other purposes. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.