Torex Announces C$55 Million Bought Deal Financing
January 29 2018 - 4:32PM
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) has
announced today that it has entered into an agreement with a
syndicate of underwriters led by BMO Capital Markets, under which
the underwriters have agreed to buy on a bought deal basis
4,370,000 common shares (the “Common Shares”) at a price of C$12.60
per Common Share for gross proceeds of approximately C$55 million
(the “Offering”). The Company has granted the Underwriters an
option, exercisable at the offering price for a period of 30 days
following the closing of the Offering, to purchase up to an
additional 15% of the Offering to cover over-allotments, if
any. The Offering is expected to close on or about February
7, 2018 and is subject to the Company receiving all necessary
regulatory approvals.
The company intends to use the net proceeds for
the Offering to fund and provide liquidity for its working capital
obligations during the re-start and ramp-up of the ELG Mine
Complex, and for general corporate purposes.
The Offering is being made under Company's base
shelf prospectus dated January 24, 2018. The Company intends to
file a prospectus supplement relating to the issuance of the Common
Shares by January 31, 2018 with the securities commissions and
other similar regulatory authorities in each of the provinces and
territories of Canada, except Québec.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy nor shall there be
any sale of the securities in the United States or in any other
jurisdiction in which such offer, solicitation or sale would be
unlawful. The securities have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent registration or an applicable exemption
from the registration requirements thereunder.
About Torex
Torex is an emerging 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. Within this
property, Torex has the El Limón Guajes Mine, which announced
commercial production in March of 2016; the Sub-Sill Underground
Project currently under development; and the Media Luna Project,
which is in an early stage of development and for which the Company
issued a preliminary economic assessment (PEA) in 2015. The
property remains 75% unexplored.
For further information, please contact:
TOREX GOLD RESOURCES INC.
Fred StanfordPresident
and CEOTel.: (647) 260-1502 Email: fred.stanford@torexgold.com |
Gabriela SanchezVice
President Investor RelationsTel.: (647) 260-1503Email:
gabriela.sanchez@torexgold.com |
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, without limitation, information with respect
to the filing of a prospectus supplement in respect of the
Offering, the closing of the Offering and the use of proceeds of
such Offering. Generally, forward-looking information can be
identified by the use of terminology such as “plans”, “expects”,
“estimates”, “intends”, “anticipates”, “believes” or variations of
such words, or statements that certain actions, events or results
“may”, “could”, “would”, “might”, “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
Company’s actual results, level of activity, performance or
achievements to be materially different from those expressed or
implied by such forward-looking information, including, without
limitation, risks related to the inability to realize resource and
reserve estimates at anticipated recovery levels or at all,
assumptions underlying resource estimates being incorrect, and
those risk factors identified in the Company’s base shelf
prospectus, annual information form and management’s discussion and
analysis. Forward-looking information is based on the 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
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, except in
accordance with applicable securities laws.
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