Not for distribution to U.S. news wire services
or dissemination in the United States.
Torex Gold Resources Inc. (the “
Company” or
“
Torex”) (TSX:TXG) is pleased to announce that it
has closed its previously announced offering (the
“
Offering”) of common shares of the Company (the
“
Common Shares”) with a syndicate of underwriters
(the “
Underwriters”) led by BMO Capital Markets.
An aggregate of 4,895,000 Common Shares were issued by the Company
at a price per Common Share of C$12.60, including 525,000 Common
Shares issued on the partial exercise of the over-allotment option,
for aggregate gross proceeds of C$61,677,000.
The net proceeds of the Offering will be used to
fund and provide liquidity for its working capital obligations
during the re-start and ramp-up of the ELG Mine Complex, as
required, and for general corporate purposes.
The Common Shares issued pursuant to the
Offering have not been and will not be registered under the US
Securities Act of 1933, as amended (the “U.S. Securities
Act”) or any state securities laws, and accordingly may
not be offered or sold within the United States except in
transactions exempt from the registration requirements of the U.S.
Securities Act and applicable state securities laws. This press
release does not constitute an offer to sell, or the solicitation
of an offer to buy the Common Shares, nor will there be any sale of
the Common Shares in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
Operations Update
The processing plant continues to process
between 10,000 – 13,000 tonnes per day. Recoveries have been
approximately 85%, and grades have been close to 3 grams per
tonne. Ore is being processed from all three open pits, El
Limon, Guajes, and El Limon Sur. Additional employees are
being called back to work, with the full complement expected back
by the end of February. SART plant construction is ramping up
and the plant is expected to be fully operational by
mid-year. The full complement of contractor employees for the
Sub-Sill is expected to be on-site by the end of March. Cash
reserves, prior to the close of the Offering, were US$64 million
including US$14 million set aside for reclamation obligations.
At the January 30th meeting to set a date for
the union selection vote, the Labour Board agreed to allow the
unions more time. The new date, to set the date for the union
selection vote, is now February 13th. While this process
unfolds, the operations continue to ramp up with excellent support
from local communities, unionized employees, staff employees, and
contractors.
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 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.Fred Stanford President
and CEO Tel. (647) 260-1502 Email:
fred.stanford@torexgold.comGabriela 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. Notwithstanding the
Company’s efforts, there can be no guarantee that the Company will
not face unforeseen delays or disruptions of the operations.
Forward-looking information also includes, but is not limited to,
use of proceeds of the Offering, the continued access to the
Company’s operations, the outcome of the government sanctioned
process to vote to elect the union, the government’s ability to
continue to restore the rule of law, the plans to complete the
sequential ramp up of operations, the expected completion,
commissioning and ramp up to full operation of the SART plant, the
expectation that a full complement of contractor employees will be
on-site by the end of March to continue the Sub Sill development.
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 base shelf prospectus and prospectus supplement in
connection with the Offering, 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.
Torex Gold Resources (TSX:TXG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Torex Gold Resources (TSX:TXG)
Historical Stock Chart
From Apr 2023 to Apr 2024