TORONTO, ONTARIO--(Marketwired - June 30, 2016) - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX:TXG) announced today that the previously announced consolidation (the "Consolidation") of the Company's issued and outstanding common shares ("Common Shares") on the basis of one post-consolidation Common Share for every ten pre-consolidation Common Shares is effective June 30, 2016. The Common Shares are expected to begin trading on a consolidated basis on the Toronto Stock Exchange (the "TSX") when markets open on July 5, 2016.
The Consolidation was approved by the TSX and a related bulletin will be issued by the TSX on June 30, 2016.
Prior to the Consolidation, the Company had approximately 788 million Common Shares outstanding. As a result of the Consolidation, the Company has approximately 78.8 million Common Shares outstanding. The exercise or conversion price and the number of Common Shares issuance under any of the Company's outstanding stock options and restricted share units has been proportionately adjusted as a result of the Consolidation.
A letter of transmittal will be mailed to registered shareholders on June 30, 2016 providing instructions to surrender the certificates evidencing their Common Shares for replacement certificates representing the number of Common Shares to which they are entitled as a result of the Consolidation. Until surrendered, each certificate representing Common Share prior to the Consolidation will be deemed for all purposes to represent the number of Common Shares to which the holder thereof is entitled as a result of the Consolidation.
Torex is an emerging intermediate gold producer based in Canada, engaged in the exploration, development and exploitation 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 Limon-Guajes (ELG) Mine, which started production in December 2015, and the Media Luna Project, at an advanced stage of exploration, with a positive PEA completed in July of 2015. The property remains 75% unexplored.
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, but is not limited to, when the Common Shares are expected to begin trading on the TSX on a consolidated basis, the timing of the TSX bulletin and the mailing of the letters of transmittal in connection with the Consolidation. 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 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.