True Gold Mining Inc.

True Gold Mining Inc.

August 29, 2013 06:30 ET

True Gold Submits Final Mine Permit Applications and Obtains Financing to Advance Karma Project in Q2 2013

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 29, 2013) - True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") is pleased to announce financial results for the second quarter ended June 30, 2013 and business highlights to date, including mine permitting milestones, exploration success and significant new funding intended to drive advancement at the Karma Gold Project (the "Karma Project") in Burkina Faso, West Africa1.

Second-quarter 2013 highlights and significant subsequent events include:

  • Raised an aggregate $33.5 million for advancement and exploration of the Karma Project, exploration at the Liguidi Project ("Liguidi") and for working capital purposes through agreements with Teck Resources Limited ("Teck") and Liberty Metals & Mining Holdings, LLC ("Liberty")2.
  • Submitted Karma (Goulagou I, Goulagou II, and Rambo deposits) exploitation permit application and Kao exploitation permit application to regulatory authorities in Burkina Faso, West Africa in July 2013. The exploitation permits (equivalent to mining permits) are the final permits required before mining can begin at the four deposits. The process from filing of application until granting of the exploitation permit typically takes four to six months.
  • Met significant milestones related to Karma Project advancement, including Burkina Faso government committee approval and community endorsement for the Karma Project relocation plan, and finalization of the related land compensation agreements3.
  • Substantially constructed the first phase of a fresh water reservoir, providing water for community use and exploration purposes.
  • Reported drill results at priority targets (North Kao, Rambo West and Watinoma) that demonstrate continuity of gold mineralization and highlight the potential to add near-surface oxide material within close proximity and potential trucking distance of the proposed infrastructure site of the Karma Project1,4.
  • Identified widespread near-surface gold mineralization and expanded Liguidi's main gold-in-soil anomaly to 17 kilometres in length5.

"True Gold has generated strong momentum for the Karma Project in key areas such as mine permitting, community relations, project funding and exploration," said Dwayne Melrose, President & CEO, True Gold. "We remain on track to deliver a feasibility study for the Karma Project in Q4-2013."

1The Company has not made a production decision and the Company's strategic plan to develop a stand-alone heap leach operation is subject to the results of its feasibility study, which is currently underway. Further, if and when the Company makes any production decision, it will disclose the basis of such decision in accordance with the requirements of NI 43-101.
2See True Gold news releases dated May 8, 2013 and July 18, 2013.
3See True Gold news release dated July 15, 2013.
4See True Gold news releases dated August 20, 2013, August 12, 2013 and August 6, 2013 for most recent results for each target.
5See True Gold news release dated August 22, 2013.

Selected financial data

The following selected financial data is derived from our unaudited condensed interim consolidated financial statements for the six month period ended June 30, 2013, as prepared in accordance with International Financial Reporting Standards.

In December 2012, the Company changed its financial year-end from October 31 to December 31 in order to align the Company's year-end with that of its subsidiaries, which operate on a calendar fiscal-year. As a result of changing the Company's year-end, the current reporting period is for the six months ended June 30, 2013.

3 months ended 6 months ended
June 30,
July 31,
June 30,
July 31,
Net loss for the period ($2,249,398) ($6,407,548) ($4,070,688) ($6,379,941)
Loss and comprehensive loss for the period ($2,309,940) ($4,941,548) ($4,433,940) ($16,374,941)
Basic and diluted loss per share ($0.01) ($0.05) ($0.02) ($0.05)
As at
June 30,
December 31,
Cash and short term investments $15,176,586 $18,889,633
Working capital $13,440,529 $16,710,450
Total assets $93,173,578 $87,597,097
Current liabilities $2,063,366 $2,584,366
Shareholders' equity $87,413,212 $80,163,731

For the three and six month period ended June 30, 2013, we reported a net loss of $2.2 million and $4.1 million respectively, compared to net losses of $6.4 million for the three month and six month period ended July 31, 2012 mainly due to the non-recurring net loss of $5.4 million and $3.8 million realized on the disposition of Roxgold common shares in the comparative period. The most significant contributions to the loss for the three and six month periods ended June 30, 2013 were the cost of salaries and benefits of $0.6 million and $1.2 million respectively (2012: $0.4 million and $0.8 million), stock-based compensation of $0.4 million and $1.0 million respectively (2012: $0.3 million and $0.7 million), office and general of $0.6 million and $0.8 million respectively (2012: $0.1 million and $0.1 million), travel and accommodation of $0.2 million and $0.5 million respectively (2012: $48,728 and $0.2 million), professional fees of $0.3 million and $0.5 million respectively (2012: $0.1 million and $0.3 million), investor relations, promotion and advertising of $0.2 million and $0.3 million respectively (2012: $0.1 million and $0.2 million) and rent of $0.1 million and $0.2 million respectively (2012: $0.1 million and $0.1 million). Expenses for the three and six month period ended June 30, 2013 were offset by a net tax recovery of $0.3 million and $0.9 million respectively (2012: $1.3 million and $1.3 million).

Total assets as at June 30, 2013 have increased since December 31, 2012 by $5.6 million to $93.2 million, mainly due to an increase to capitalized exploration and development costs related to the on-going investment in the Company's exploration and evaluation assets. This increase was partially offset by a decrease in cash and short term investments reflecting cash outflows from corporate activities through the six months ended June 30, 2013.

This press release should be read in conjunction with True Gold's unaudited condensed interim consolidated financial statements and Management's Discussion and Analysis for the quarter ended June 30, 2013. These documents can be found on the Company's website ( or under the Company's profile on SEDAR at All amounts are presented in Canadian dollars unless otherwise stated.

Peter C. Carter, P. Eng., Chief Operating Officer and Vice President Engineering of the Company, is the Company's designated Qualified Person for this news release within the meaning of NI 43-101 and has reviewed and verified that the technical information contained in this release is accurate and approves of the written disclosure of same.

About True Gold

True Gold Mining Inc. is where gold comes to life. We are committed to growing a successful gold exploration, development and production company, by focusing on projects with low costs, low technical risks and solid economics. The Company's board, management and technical teams have proven track records in gold exploration, development, operations and production worldwide.

Additional information about the Company and its activities may be found on the Company's website at and under the Company's profile at


Dwayne Melrose, President & CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain statements made and information contained in this news release and elsewhere constitutes "forward-looking information" within the meaning of Canadian securities legislation. Such forward-looking statements are based on certain assumptions and are subject to risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, with respect to statements regarding the potential increase to mineral resources, the assumptions set forth in this news release and in the Company's news releases of May 8, 2013; July 15, 2013; July 18, 2013; August 6, 2013; August 12, 2013; August 20, 2013 and August 22, 2013 and risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources, the geology, grade and continuity of mineral deposits, the possibility that future exploration and development results or the results of the Feasibility Study on Karma will not be consistent with the Company's expectations, accidents, equipment breakdowns, risk of undiscovered, title defects and surface access, labour disputes, the potential for delays in exploration and permitting activities, the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, political risk and other risks and uncertainties, including those described under Risk Factors in each management discussion and analysis and in the Company's annual information form which are available under the Company's profile at Forward-looking information is based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of gold, that the Company will receive required permits and access to surface rights, that the Company can access financing, appropriate equipment and sufficient labour and that the political environment within Burkina Faso will continue to support the development of environmentally safe mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.

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