VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 9, 2014) - TriMetals Mining Inc. (TSX:TMI)(TSX:TMI.B)(OTCQX:TMIAF)(OTCQX:TMIBF), reports the release of its unaudited consolidated financial statements for the three months ended March 31, 2014 and the related management's discussion and analysis of financial position and results of operations ("MD&A"). In this press release, all amounts are expressed in U.S. dollars, unless otherwise indicated.
The exploration at Gold Springs budgeted for 2014 was revised upwards on April 21, 2014 to add an RC drilling program of approximately 25 holes and now amounts to $1,900,000 (previously $1,400,000). The program includes, among other things, completion and filing of a NI 43-101-compliant Technical Report that includes the updated 2014 resource estimate (completed and filed on SEDAR on March 19, 2014), completion and filing of a NI 43-101-compliant Technical Report that includes the PEA (completed and filed on SEDAR on May 1, 2014), the RC drilling aimed at expanding the estimated mineral resource, continuation of permitting activities including environmental and cultural studies, metallurgical test-work and other exploration activities.
With the addition of the RC drilling program at Gold Springs, the estimated working capital requirements for 2014, per the Company's amended plan, are now $5,700,000 (previously $5,200,000), of which $2,550,000 are for general and administrative expenses (operating activities) and $3,150,000 (previously $2,650,000) for investing activities which mainly include exploration work at Gold Springs and Escalones.
As at March 31, 2014, the Company had working capital of $8,929,595, including cash and cash equivalents of $9,710,165. As a consequence, the Company remains in a strong financial position to continue activities at its Escalones and Gold Springs projects, to fund the costs and expenses related to its international arbitration proceedings against Bolivia that are not otherwise covered by the Fund, and to meet its other working capital requirements for 2014.
The Company has undertaken a number of cost-saving initiatives to reduce General and Administrative expenses which includes, among others, closing its main office in Vancouver in Q4 2013, executives' salaries reduction, and a significant staff reduction. General and Administrative expenses decreased from $1,694,540 in Q1 2013 to $991,279 in Q1 2014 as shown in the unaudited consolidated financial statements for the three months ended March 31, 2014.
The priorities of the Company for the remainder of 2014 are to (i) continue to explore the Gold Springs project with the intent to expand the resource estimate and move the project closer to production; (ii) seek an appropriate joint venture partner for the Escalones copper-gold porphyry project in Chile whilst continuing permitting activities and metallurgical testing; (iii) continue international arbitration proceedings against Bolivia to recover full compensation based on the fair market value for the Malku Khota project; and (iv) diligently continue managing and preserving the Company's cash resources.
About TriMetals Mining Inc.
TriMetals Mining Inc. is a growth focused mineral exploration company creating value through the exploration and development of the near surface, Gold Springs gold-silver project in mining friendly Nevada and Utah in the U.S.A.; the advancement of the large scale Escalones copper-gold project in Chile, and realization of value from the expropriated Malku Khota project in Bolivia through an arbitration process.
The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise, and a focus on community relations and sustainable development. Management has extensive experience in the global exploration and mining industry.
The Company's common shares and Class B shares are listed on the Toronto Stock Exchange under the symbols "TMI" and "TMI.B" and the common shares and Class B shares also trade on the OTCQX market under the symbol "TMIAF" and "TMIBF". Additional information related to TriMetals Mining Inc. is available at www.trimetalsmining.com and on SEDAR at www.sedar.com.
Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "budgeted", "expanding", "continue", "estimated", "creating", "realization", and "advancement" and similar expressions. This News Release contains forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors.
Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, uncertainties associated with the arbitration proceeding against Bolivia, including the quantum of damages to be obtained and the realization or collection of the value of any award or settlement; and risks of the mineral exploration industry which may affect the advancement of the Escalones or Gold Springs projects, including possible variations in mineral resources or grade, metal prices, capital and operating costs, and the application of taxes, availability of sufficient financing to fund further required work in a timely manner and on acceptable terms, timely receipt of required permits, availability of equipment and qualified personnel, failure of equipment or processes to operate as anticipated, changes in project parameters as plans continue to be refined; and other risks more fully described in the Company's Annual Information Form filed and publicly available on SEDAR at www.sedar.com. The assumptions made in developing the forward-looking statements include: the ability of the Company to realize value from its investments in Bolivia; the arbitration proceeding along a timeline consistent with other international arbitrations and the Fund honoring its contractual commitments, the accuracy of current resource estimates and the interpretation of drill, metallurgical testing and other exploration results; the timely receipt of required permits for Escalones and Gold Springs projects; the continuing support for mining by local governments in Nevada, Utah and Chile, the availability of equipment and qualified personnel to advance the Escalones and Gold Springs projects; and the execution of the Company's existing plans and further exploration and development programs for Escalones and Gold Springs Projects, which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs. Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this News Release describe the Company's expectations as of May 9, 2014.