Torex Gold Responds to Recent Shareholder Letter
October 09 2019 - 7:30PM
Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG)
maintains regular and open dialogue with all shareholders and
stakeholders. As part of our open dialogue, we welcome and consider
all feedback from shareholders and consider such feedback in the
Board’s regular review processes. The Board, as it always has, uses
best practices to ensure that there are no circumstances which
would interfere with the execution of a director’s fiduciary
responsibility to Torex and its shareholders.
As described in Torex’s public disclosures, the
Company’s long-term strategy is to develop a sustainable,
multi-asset, mining business by:
- Executing operationally in order to generate strong free cash
flow from El Limón Guajes, as recently demonstrated by the record
quarterly production result delivered in Q3 2019;
- Advancing, de-risking, and bringing Media Luna successfully
into production; and
- Delivering the full potential of our innovative Muckahi Mining
System to the benefit of all Torex shareholders, including the
possible acquisition of assets amenable to the Muckahi Mining
System.
In the context of the Company’s long-term
strategy of developing a sustainable, multi-asset, mining business,
Torex regularly assesses a range of alternatives that may include
transactions that fit Torex’s stringent criteria, provided such a
transaction is accretive to shareholder value on a per share basis.
Although it is the Company’s policy to avoid commenting on market
speculation and rumours, Torex confirms it is not in dialogue with
or considering a transaction with any resource company and, to
clarify recent incorrect market speculation and rumours, Torex is
not in dialogue with or considering an acquisition or transaction
with TMAC Resources Inc.
About Torex Gold Resources
Inc.Torex is an intermediate gold producer based in
Canada, engaged in the exploration, development and operation of
its 100% owned Morelos Gold Property, an area of 29,000 hectares in
the highly prospective Guerrero Gold Belt located 180 kilometers
southwest of Mexico City. The Company’s principal assets are the El
Limón Guajes mining complex (“ELG” or the “ELG Mine Complex”),
comprised of the El Limón, Guajes and El Limón Sur open pits, the
El Limón Guajes underground mine including zones referred to as
Sub-Sill and El Limón Deep (“ELD”), and the processing plant and
related infrastructure, which is in the commercial production stage
as of April 1, 2016, and the Media Luna deposit, which is an early
stage development project, and for which the Company issued an
updated preliminary economic assessment in September 2018 (the
“Technical Report”). The property remains 75% unexplored.
For further information, please contact:
TOREX GOLD RESOURCES INC. |
|
Fred Stanford President and CEO Direct: (647) 260-1502 Email:
fred.stanford@torexgold.com Dan Rollins Vice President, Corporate
Development & Investor Relations Direct: (647) 260-1503 Email:
dan.rollins@torexgold.com |
Terrance MacGibbonChairman of the BoardDirect: (647) 260-1500 |
CAUTIONARY NOTES
Muckahi Mining System The
Technical Report includes information on Muckahi. It is important
to note that Muckahi is experimental in nature and has not been
tested in an operating mine. Many aspects of the system are
conceptual, and proof of concept has not been demonstrated.
Drill and blast fundamentals, standards and best practices for
underground hard rock mining are applied in the Muckahi, where
applicable. The proposed application of a monorail system for
underground transportation for mine development and production
mining is unique to underground hard rock mining. There are
existing underground hard rock mines that use a monorail system for
transportation of materials and equipment, however not in the
capacity described in the Technical Report. Aspects of Muckahi
mining equipment are currently in the design and test stage. The
mine design, equipment performance and cost estimations are
conceptual in nature, and do not demonstrate technical or economic
viability. The Company expects to complete the development and test
the concept by the end of 2019 for the mine development and
production activities. Further studies would be required to verify
the viability of Muckahi.
Forward Looking StatementsThis
press release contains “forward-looking statements” and
“forward-looking information” within the meaning of applicable
Canadian securities legislation. Notwithstanding the Company’s
efforts, there can be no guarantee that the Company will not face
unforeseen delays or disruptions of its operations including
without limitation, delays caused by blockades limiting access to
the ELG Mine Complex and the Media Luna Project or by blockades or
trespassers impacting the Company’s ability to operate.
Forward-looking information also includes, but is not limited to,
the Company’s long-term strategy and ability to deliver long-term
value to shareholders, the generation of free cash flow, the
advancement, de-risking and development of Media Luna and the
expectation that a feasibility study will be started in early-2020,
the potential of the new mining technology (Muckahi), as well as
Torex’s assessment of and proceeding with corporate opportunities.
Generally, forward-looking information can be identified by the use
of forward-looking terminology such as “plans”, “expects”,
“estimates”, “intends”, “anticipates”, “believes” or “potential” 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
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, without limitation, uncertainty involving resource and
reserve estimates and production forecasts, the success of the
Muckahi mining system, the ability to fund the development and
testing of Muckahi, and those risk factors identified in the
Technical Report and the Company’s annual information form and
management’s discussion and analysis, the assessment of and
proceeding with corporate opportunities in the future.
Forward-looking information are based on the assumptions discussed
in the Technical Report and such other reasonable assumptions,
estimates, analysis and opinions of management made in light of its
experience and perception of trends, current conditions and
expected developments, and other factors that management believes
are relevant and reasonable in the circumstances at the date such
statements are made. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in the forward-looking information,
there may be other factors that cause results not to be as
anticipated. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information.
Accordingly, readers should not place undue reliance on
forward-looking information. The Company does not undertake to
update any forward-looking information, whether as a result of new
information or future events or otherwise, except as may be
required by applicable securities laws.
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