TriMetals Mining Inc.

TriMetals Mining Inc.

November 07, 2014 16:26 ET

TriMetals Mining Inc. files Third Quarter 2014 Financial Statements and MD&A

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 7, 2014) - TriMetals Mining Inc. (TSX:TMI)(TSX:TMI.B)(OTCQX:TMIAF)(OTCQX:TMIBF) reports the release of its unaudited condensed interim consolidated financial statements for the three and nine months ended September 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 at September 30, 2014, the Company had working capital of $5,341,761, including cash and cash equivalents of $6,050,547. The Company remains in a strong financial position to meet its planned working capital requirements for the remainder of 2014.

The exploration budget at Gold Springs for 2014 was revised upwards on August 21, 2014 to continue the drill program in the second half of 2014. Hence the estimated working capital requirements of the Company for the full year of 2014, per the Company's amended plan, amount to $6,200,000 (previously $5,700,000). Of this amount, $2,550,000 are for general and administrative expenses (operating activities) and $3,650,000 (previously $3,150,000) are for investing activities which mainly include exploration work at Gold Springs and Escalones. As at September 30, 2014 the Company has spent $4,720,784 of the $6,200,000 planned working capital requirements for 2014.

The revised exploration program at Gold Springs for the full year of 2014 includes, among other things, completion and filing of Technical Reports that include the updated 2014 resource estimate and the Preliminary Economic Assessment (filed on SEDAR on July 8, 2014), the drilling program of 36 RC drill holes designed to expand the mineral resource estimate and of 2-4 diamond drill holes on both the Jumbo and Grey Eagle resource blocks to provide metallurgical, density and detailed geological information. It also includes the continuation of permitting activities including environmental and cultural studies, metallurgical test-work and other exploration activities throughout the year. During the nine months ended September 30, 2014 the Company completed 37 RC drill holes (36 were planned) and spent $1,774,125 of this year's exploration program at Gold Springs.

Assay results from the last 11 RC drill holes completed at Gold Springs this year are still pending and will be reported when results are received.

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 in South American and Canada. As a result, General and Administrative expenses decreased from $4,303,198 in the nine months ended September 30, 2013 to $2,121,551 in the nine months ended September 30, 2014 and from $1,465,925 in three month period ended September 30, 2013 to $518,061 in the three month period ended September 30, 2014.

During the nine months the Company also recorded non-cash income of $3,865,269 (2013 - Nil) in respect of a change in fair value of the Company's Class B shares, and non-cash income of $987,627 (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 earnings for the three and nine month periods ended September 30, 2014 was $5,255,718 (2013 - net loss of $2,041,625) and $2,898,889 (2013 - net loss of $6,281,775), respectively.


The priorities of the Company are to (i) continue with the exploration program at Gold Springs; (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.

Forward-looking Statements

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 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 November 7, 2014.

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