Torex Gold Resources Inc. (TSX:TXG) Reports Third Quarter Results
Torex continues to be one of our largest holdings. There is a large institutional following and has excellent liquidity. Cash on hand is 66.4 million dollars!
Torex Gold Reports Third Quarter Results
TORONTO, ONTARIO–(Marketwire – Sept. 8, 2010) –
(All amounts expressed in Canadian Dollars unless otherwise stated)
Torex Gold Resources Inc. (the “Company”) (TSX:TXG) announced today its financial results for the three and nine months ended July 31, 2010.
SIGNIFICANT EVENTS AND TRANSACTIONS
— During and subsequent to the quarter ended July 31, 2010, the Company
signed three key one-year surface access agreements with the Rio Balsas,
Puente Balsas Sur, and Real Del Limon Ejidos. The signing of these
agreements constitutes the final step in providing the Company with full
access to the highly prospective exploration areas of the Morelos Gold
Project and constitutes a measureable outcome from the continuous energy
the Company has put into gaining the trust and respect of the
communities within which it operates.
— The Company signed an agreement with Major Drilling De Mexico, S.A. de
C.V., and mobilized a skid mounted drill rig in early July. A second man
portable rig was added to the fleet in August. Through August 28, 2010,
a total of 22 completed or partial drill holes comprising 7,265 meters
have been drilled in the Morelos Gold Project area. These holes served
the dual purpose of being either exploration or condemnation holes for
planned surface infrastructure.
— The pre-feasibility study has progressed well during the quarter with a
number of areas being completed including selecting the open pit mining
method to mine both the Guajes East and West deposits. The Company’s
current expectation is that it will be completed in the fourth calendar
quarter of this year. This study will include an updated resource model
completed by AMEC E&C Services Inc.
FINANCIAL HIGHLIGHTS
— The net losses for the three and nine months ended July 31, 2010
increased to $4,107,000 or $0.01 per common share and $11,521,000 or
$0.05 per common share compared with losses of $144,000 or $0.01 per
common share for the three months and $347,000 or $0.01 per common share
for the nine months ended in 2009. The increase in loss for three and
nine months ended July 31, 2010, when compared to the same periods in
2009, is due to increased corporate, exploration and development
activity related to the transformation to a company with a development
stage asset.
— As at July 31, 2010, the Company had $66.4 million of cash on hand and a
working capital surplus of $65.5 million. Cash in-flows included $4.1
million related to the exercise of warrants and options and were
partially offset by the incurrence of corporate, exploration, project
development and equipment expenditures for the quarter ended July 31,
2010, which resulted in an increase of approximately $1.7 million of
cash on hand from April 30, 2010.
A complete set of the Company’s Financial Statements, Notes to the Financial Statements and Management’s Discussion and Analysis for the three and nine months ended July 31, 2010 will be posted on the Company’s website at www.torexgold.com and will be filed on Sedar at www.sedar.com.
Torex Gold Resources Inc. is a well funded, growth oriented Canadian mining company engaged in the exploration and development of precious metal resources with a focus on gold. It owns 100% of the Morelos Gold Project, an advanced stage gold exploration property, located 180km southwest of Mexico City.
