Torex Reports 2010 Audited Year End Results
Torex Gold Resources Inc. announced today its audited results for the year ended October 31, 2010.
– Acquired 100% of the Morelos Gold Project through two separate purchase transactions – Raised gross proceeds of $291.5 million through two separate financing transactions – Appointed a new board, management, exploration and operations teams – Commenced trading on the Toronto Stock Exchange – Reactivated and renewed two key land access agreements with the Rio Balsas Ejido and the Puente Sur Balsas Ejido – Began exploration and drilling programs in April 2010 – Negotiated and signed a land access agreement with the Real del Limon Ejido – Mobilized six drills to site by the end of October 2010 – Advanced pre-feasibility work for Morelos Gold Project development on a number of fronts – Completed a resource estimate on the El Limon deposit indicating the
potential for an underground mining operation for the El Limon deposit
– Mobilized five additional drills to site – Approved a $43.5 million budget for fiscal 2011 ($37.0 million related to exploration and development activities including 125,000 metres of drilling by fiscal 2011 year-end) – Announced the extension of the El Limon and Los Guajes East deposits
through step-out drilling
The net loss for the year ended October 31, 2010 increased to $16.4 million compared with a loss of $1.0 million for the year ended October 31, 2009. This increase in loss is due to increased exploration, development and corporate activity related to the transformation to a company with an advanced-stage gold exploration property. Proceeds received from the two completed financing transactions were partially offset by the purchase of the Morelos Gold Project and the incurrence of exploration, project development, corporate and equipment expenditures. As a result, the Company had $62.7 million of cash on hand at October 31, 2010 and a working capital balance of $61.9 million.