(All amounts expressed in Canadian Dollars unless otherwise stated)TORONTO, Ontario, December 7, 2012 - Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) announced today its financial results for the three and twelve months ended October 31, 2012.
FOURTH QUARTER 2012 REPORT HIGHLIGHTS
- Completed $380 million bought deal financing and over-allotment option exercise
- Completed feasibility study and related technical report for the Morelos Gold Project
- Proven and probable reserves base at the Morelos Gold Project of 4.1 million ounces of gold
- Expanded senior management team for the construction and operation phases
- Discovered gold-copper-silver mineralization over a 1.85 kilometre strike length at its Media Luna target, south of the Balsas River
- Discovered gold-copper-silver mineralization of significant thickness at its Media Luna West target, south of the Balsas River
- Changed the Company’s year-end to December 31 from October 31
- Signed five of the remaining six individually owned land lease agreements with the Rio Balsas and Real del Limon Ejido members
The net loss for the three and twelve months ended October 31, 2012 increased to $17.2 million and $61.2 million, respectively, compared with a net loss of $9.6 million for the three months ended October 31, 2011 and $33.9 million for the twelve months ended October 31, 2011. Exploration and evaluation expenditures totalled $12.0 million and $48.6 million during the three and twelve months ended October 31, 2012, respectively, compared to $7.9 million and $24.7 million in the same periods in 2011. The Company’s cash position increased by $387.1 million during the first twelve months of fiscal 2012 compared with a decrease of $26.5 million for the same period in 2011. At October 31, 2012, the Company had $642.5 million in assets including $423.3 million of cash and had a working capital balance of $418.1 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 will report 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 unaudited condensed consolidated interim Financial Statements and related Notes for the three and twelve months ended October 31, 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.
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
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