TORONTO, Ontario, December 16, 2011 — Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) is pleased to announce that its wholly owned subsidiary, Minera Media Luna S.A. de C.V., has signed a long term, common land lease agreement with the Rio Balsas Ejido for the use of 507 hectares of land, for the future construction, mining, and processing of gold at its Morelos Gold Project in Guerrero State, Mexico.
In addition, the Company has also signed long term lease agreements for 77 individually ‘owned’ land parcels (additional 576 hectares), under the same terms as the common land leases. Work is underway to resolve certain administrative issues, such as succession rights and absentee ownership; so that agreements on 10 additional individually ‘owned’ land parcels can be finalized and executed.
The terms of the lease agreements are believed to be comparable to long term lease agreements signed by other operating mining companies in the area. The lease agreements are for 30 years with annual payments of 23,000 pesos per hectare during the first two years and then for the next 13 years, the equivalent, in pesos, of 2.5 troy oz of gold per hectare, calculated at the annual average gold price published by the London Bullion Market Association. Starting in year 16, and every 5 years thereafter, the amount of the annual payments will be renegotiated.
Fred Stanford, President and CEO of Torex said “We are very pleased that the Company’s ongoing community and social efforts have been extremely successful in establishing respectful and mutually beneficial relationships between the Company and the land holders at our Morelos Project. Those extensive efforts first enabled the Company to obtain fair and reasonable surface exploration land use agreements with all the Morelos area ejidos and have now led to the signing of equally fair and reasonable long term land use agreements with the Rio Balsas Ejido. The agreements with the Rio Balsas Ejido have secured long term tenure for approximately 63% of the land required to put the Morelos gold deposits into commercial production. Negotiations are well underway with the Real del Limon Ejido and we are confident that agreements will, in a timely manner, be concluded to acquire long term land use for the additional required lands and the relocation of two small villages.”
The Company expects to complete several additional important milestones during 2012, including: the signing of long term land lease agreements with the Real del Limon Ejido which will result in the Company having agreements in place on all lands required to put the property into commercial production, publication of updated resource estimates by the end of March, completion of a bankable feasibility study by the end of June, receipt of all required permits, arrangements for project financing and the commencement of project development, if warranted. The company currently has over $110 million in the treasury and is fully funded to continue aggressively exploring the property for new deposits and to conduct all activities required to make a positive production decision including the early purchase of long lead time items.
Torex Gold Resources Inc. is a well funded, growth-oriented, Canadian mining company engaged in the exploration and development of precious metal resources with a focus on gold. It owns 100% of the Morelos Gold Project, an advanced stage gold exploration property, located 180km southwest of Mexico City in the highly prospective Morelos Gold Belt. The project covers an area of 29,000ha of which more than 75% remains unexplored.
For further information, please contact:
TOREX GOLD RESOURCES INC.
President and CEO
Tel. (647) 260-1502
Vice President Investor Relations
Tel. (647) 260-1503
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
Except for statements of historical fact relating to the Company, certain information in this press release constitutes “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, development and production plans concerning the Morelos Gold Project, expected drilling results and updated resource estimates, and the timing within which the Company expects to receive drilling results, anticipated timing for the completion of a bankable feasibility study and other technical studies on the project, expected timing for project commissioning and expected securing of long term tenure to additional land required for potential future operations through successful negotiations with the Ejidos and other local landowners. 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 but not limited to risks related to: unexpected events and delays impacting the timing of future drill programs, completing of a bankable feasibility study, other technical studies and an updated resource estimate for the Morelos Gold Project; the possibility that anticipated exploration results will not be consistent with the Company’s expectations; defects in the title held by landowner; successfully negotiating with the Ejidos, and other local landowners, to secure long term tenure to other land required for potential future operations; as well as the risk factors disclosed in the Company’s Annual Information Form and Management’s Discussion and Analysis for the year ended October 31, 2010 and other public disclosure available at www.sedar.com. 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 plans, objectives and operations 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.