Torex Lenders Extend Waiver on Liquidity Covenant
January 31 2018 - 6:00AM
Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG)
announces that its wholly owned subsidiary, Minera Media Luna, S.A.
de C.V. (“MML”), has received an extension to the previously
announced waiver signed by BNP Paribas, as Administrative Agent, on
behalf of the Lenders. This waiver lowers the liquidity covenant
threshold in the amended and restated credit agreement dated July
21, 2017, from US$50 million to US$30 million until February 28,
2018, with the proviso that the remaining US$25 million available
under the credit agreement, which is not yet drawn, is counted
toward meeting the liquidity covenant threshold but it may not be
drawn by MML.
Fred Stanford, President & CEO of Torex
stated: “This extension to the previously agreed waiver on the part
of the lenders provides an extra level of comfort to temporarily
minimize any risk of covenant breach while we endeavor to re-start
operations at the ELG Mine. Once again, our appreciation to
the Lenders for their unwavering support.”
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 Project,
currently under development, and the Media Luna Project, an early
stage development project for which the Company issued a
preliminary economic assessment (PEA) in 2015. The property remains
75% unexplored.
Contact
Information:TOREX GOLD RESOURCES INC. |
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Fred
StanfordPresident and CEOTel. (647) 260-1502Email:
fred.stanford@torexgold.com |
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Gabriela
SanchezVice President Investor RelationsTel. (647) 260-1503Email:
gabriela.sanchez@torexgold.com |
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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. Notwithstanding the
Company’s efforts, there can be no guarantee that a default under
the credit agreement will not occur in the future. Forward-looking
information also includes, but is not limited to, the Company
continuing to meet the requirements of the credit agreement, the
continued removal of the illegal blockade and access to the
Company’s operations, the availability of the government sanctioned
process to resolve the labour dispute, including the vote to elect
the union, the outcome of such process, the government’s ability to
continue to restore the rule of law, the time period during which
operations may be continued and how such operations will be
continued, the time period to re-start operations, the prospect
that operations may again be shut down and the circumstances of
such shut down. Generally, forward-looking information can be can
be identified by the use of forward-looking terminology such
“purpose”, “budgeted”, “scheduled”, “potentially”, “proposed”,
“pending”, “contemplates”, “plans”, “expects”, “estimates”,
“intends”, “anticipates”, “believes”, or “subsequent” or
variations of such words and phrases or state that certain actions,
events or results “may”, “could”, “would”, “might”, “will” 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 activities of the Company to be
materially different from those expressed or implied by such
forward-looking information, including, without limitation, those
risk factors identified in the Company’s 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 its perception of trends, current conditions and expected
developments, as well as other factors that management believes to
be relevant and reasonable in the circumstances at the date that
such statements are made, but which may prove to be incorrect.
Although the Company believes that the assumptions and expectations
reflected in such forward-looking information are reasonable, undue
reliance should not be placed on forward-looking information
because the Company can give no assurance that such expectations
will prove to be correct. 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. The Company does not undertake to update any
forward-looking information, except in accordance with applicable
securities laws.
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