Torex Gold Resources Inc.
TSX : TXG

Torex Gold Resources Inc.

April 13, 2012 06:00 ET

Torex Reports First Quarter Results

(All amounts expressed in Canadian Dollars unless otherwise stated)

TORONTO, ONTARIO--(Marketwire - April 13, 2012) - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX:TXG) announced today its financial results for the three months ended January 31, 2012.

FIRST QUARTER 2012 HIGHLIGHTS

  • The Company continued to encounter significant and high-grade gold mineralization in step-out and infill drilling on all known deposits during the quarter

  • Mineral resource estimate modelling for the north of the Balsas River deposits commenced, with the final mineral resource estimates expected to be completed by the end of April 2012

  • Long-term land lease agreements with the Rio Balsas Ejido and Real Del Limon Ejido were signed in December 2011 and March 2012, respectively

  • Gross proceeds of $77.8 million were received in November 2011 from the exercise of warrants and compensation options

FINANCIAL HIGHLIGHTS

The net loss for the quarter ended January 31, 2012 increased to $13.4 million compared with a net loss of $7.4 million for the same period in 2011. Exploration and evaluation expenditures totalled $10.4 million compared with $4.5 million for the same period in 2011. The Company's cash position increased by $55.6 million during the quarter ended January 31, 2012 compared with a decrease of $8.8 million for the same period in 2011. At January 31, 2012, the Company had $306.5 million in assets, ($250.0 million at October 31, 2011), including $91.8 million of cash, ($36.2 million at October 31, 2011) and had a working capital balance of $101.7 million, ($36.3 million at October 31, 2011).

A complete set of the Company's unaudited condensed consolidated interim Financial Statements and related Notes for the three months ended January 31, 2012 and Management's Discussion and Analysis 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 in the highly prospective Morelos Gold Belt. The project covers an area of 29,000ha of which more than 75% remains 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, information with respect to future exploration and development plans concerning the Morelos Gold Project, including expected timing for mobilizing drills on the project, expected drilling results and the timing within which the Company expects to receiving drilling results, anticipated timing for the completion of a pre-feasibility study and other technical studies on the project. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "estimates", "intends", "anticipates" or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made at the date that such statements are made. 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 the risk factors disclosed elsewhere in the Company's public disclosure. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purposes of assisting investors in understanding the Company's expected financial and operating performance and the Company's plans and objectives and may not be appropriate for other purposes. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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