VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 13, 2014) - TriMetals Mining Inc. (TSX:TMI)(TSX:TMI.B)(OTCQX:TMIAF)(OTCQX:TMIBF), a gold stock, reports the release of its unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 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.
As previously reported, the exploration budget at Gold Springs for 2014 was revised upwards on April 21, 2014 to incorporate an RC drilling program of approximately 25 holes, hence the estimated working capital requirements of the Company for the full year of 2014, per the Company's amended plan, amount to $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) are for investing activities which mainly include exploration work at Gold Springs and Escalones.
The total budget for this year's exploration program at Gold Springs amounts to $1,900,000 and includes, among other things, completion and filing of Technical Reports that include the updated 2014 resource estimate and the Preliminary Economic Assessment (see the amended Technical Report filed on SEDAR on July 8, 2014), the drilling program of 25 RC holes designed to expand the mineral resource estimate, continuation of permitting activities including environmental and cultural studies, metallurgical test-work and other exploration activities throughout the year. During the six months ended June 30, 2014 the Company completed 26 RC holes (25 were planned) and spent $924,494 of this year's exploration program at Gold Springs. The results of the drilling activities are presently being reviewed prior to defining the activities for the remainder of the year.
As at June 30, 2014, the Company had a working capital of $6,901,736, including cash and cash equivalents of $8,032,973. As a result, the Company remains in a strong financial position to continue activities at its Gold Springs and Escalones projects, to fund the costs and expenses related to its international arbitration proceedings against Bolivia that are not otherwise covered by the third party funder, and to meet its other working capital requirements for 2014.
The Company took a number of cost-saving initiatives to reduce General and Administrative expenses which included, among others, closing its main office in Vancouver in Q4 2013, executives' salaries reduction, and a significant staff reduction. As a result, General and Administrative expenses decreased from $2,837,273 in the first half of 2013 to $1,603,490 in the first half of 2014 and from $1,142,733 in three month period ended June 30, 2013 to $612,211 in the three month period ended June 30, 2014 as shown in the unaudited consolidated financial statements for the three and six months ended June 30, 2014.
The Company also recorded a non-cash loss during the six months of $1,605,293 (2013 - Nil) in respect of a change in fair value of the Company's Class B shares which more than offset non-cash income amounts of $700,910 (2013 - Nil) and $156,922 (2013 - Nil) in respect of the change in fair value of options and warrants exercisable into Class B and common shares.
The total net loss for the three and six month periods ended June 30, 2014 was $550,024 (2013 - $2,579,249) and $2,356,829 (2013 - $4,240,150), respectively.
The priorities of the Company for the remainder of 2014 are to (i) continue with the exploration program at Gold Springs, as revised on April 21, 2014, with an emphasis on metallurgical testing which includes column test; (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 the Company's cash resources.
Certain statements contained herein constitute "forward-looking statements". 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", "designed", "estimated", "expand", "continuation", and similar expressions. Information concerning the interpretation of drill results may also be considered forward-looking statements as such information constitutes a prediction of what mineralization might be found to be present if and when a mining project is actually developed. These forward- looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. 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, possible variations in mineral resources, grade, metal prices; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; changes in project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated; regulatory, environmental and other risks of the mining industry more fully described in the Company's Annual Information Form, which is available on SEDAR at www.sedar.com. The assumptions made in developing the forward-looking statements include: the accuracy of current resource estimates and the interpretation of drill, metallurgical testing and other exploration results; the continuing support for mining by local governments in Nevada and Utah; the availability of equipment and qualified personnel to advance the Gold Springs project; execution of the Company's existing plans and further exploration and development programs for Gold Springs, 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.
Readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release. Except as required by law, 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 August 13, 2014.