VANCOUVER, BC–(Marketwired – May 12, 2017) – TriMetals Mining Inc. (TSX: TMI) (OTCQX: TMIAF), (the “Company”), reports the release of its unaudited consolidated financial statements for the three months ended March 31, 2017 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 March 31, 2017, the Company had working capital of $1.3 million including cash and cash equivalents of $1.2 million.
During the three months ended March 31, 2017, the Company reported net earnings of $1,916,199 ($0.01 per share) compared to a loss of $2,021,546 ($0.01 per share) reported in the first quarter of 2016. The 2017 first quarter earnings include a non-cash income amount of $2,426,771 (2016 – charge of $1,502,901) in respect of the change in fair value of the Company’s Class B shares.
General and administrative expenses increased from $421,419 to $456,840. Non-cash share-based payments increased from $17,046 to $55,448. Excluding the impact of share-based payments, general and administrative expense decreased by 1%. During 2016, management implemented a number of cost-saving measures to streamline the operations and administration and these measures have continued into 2017.
Total exploration spending for the first quarter ended March 31, 2017 increased to $633,943 from $296,612 incurred in the first quarter of 2016. The 2017 first quarter costs included $555,381 incurred at Gold Springs which included $150,000 in water lease payments. During the first quarter, the Company acquired the rights to 1,658 acre feet of water per year for the Gold Springs project through a water lease agreement which includes an option to purchase 1,500 of the 1,658 acre feet of water rights. The annual aggregate lease payment is $300,000, and such payments may be offset prior to mining by subleasing the water rights. Subsequent to the first quarter, the Company subleased to a third party 242 acre feet of water rights for annual proceeds of $12,120.
The Gold Springs expenditures also included costs associated with the updated resource estimate as well as geochemistry, supervision, analysis of exploration data and ongoing environmental studies for permitting. At Escalones, the Company incurred costs of $78,562 which mainly included land payments and supervision.
The comparative 2016 first quarter costs included $228,333 incurred at Gold Springs which included costs associated with further analysis of exploration data and ongoing metallurgical testing. In addition, the Company expanded its Gold Springs property holdings by acquiring a 64.75 hectare Utah State mineral lease at a cost of $20,000. At Escalones, the Company incurred costs of $68,279 which mainly included land payments and supervision.
On February 21, 2017, the Company acquired mineral concessions immediately adjacent to the north and north-east of Escalones, increasing the property position controlled by the Company from 9,389 hectares to 16,189 ha., of which 4,689 ha. are subject to the Boezio Option agreement.
The Company is looking for a partner to develop Escalones and it is also considering other alternatives to monetize the value of the project.
Outlook
The priorities of the Company are to (i) continue with the exploration program at Gold Springs with the intention of expanding the mineral resource and moving the project closer to production; (ii) seek an appropriate partner for the Escalones copper-gold porphyry project in Chile and consider other alternatives to monetize the value of the project; (iii) continue with the international arbitration 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.
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 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”. Note that the Class B shares have no interest in the properties or assets of the Company. The Class B shares are only entitled collectively to 85% of the net cash, if any, (after deducting all costs, taxes and expenses and the third-party funder’s portion thereof) received by TMI from award or settlement in relation to the Company’s subsidiary South American Silver Limited’s arbitration proceeding against Bolivia for the expropriation of the Malku Khota project in 2012. Additional information related to TriMetals Mining Inc. is available at www.trimetalsmining.com and on SEDAR at www.sedar.com.
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 “expect”, “plan”, “seek”, “continue”, “typical”, “will”, “intention”, “creating”, “and similar expressions. 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, the outcome of the international arbitration process, including the timing and the quantum of damages to be obtained, management’s expectation with regard to the final amount of costs, fees and other expenses and commitments payable in connection with the arbitration, and any inability or delay in the collection of the value of any award or settlement; and risks of the mineral exploration industry which may affect the advancement of the Gold Springs or Escalones projects, including possible variations in mineral resources or grade, recovery rates, metal prices, availability of sufficient financing to fund further required work in a timely manner and on acceptable terms, 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 in a customary manner and in accordance with Procedural Order No. 1 (as amended in April and June 2015 and in January 2016) and the third party funder honoring its contractual commitments, 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, Utah and Chile, the availability of equipment and qualified personnel to advance the Gold Springs project; and the execution of the Company’s existing plans and further exploration and development programs for the Gold Springs Project, 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 May 12, 2017.
TriMetals Mining Inc. Contact:
Ralph Fitch
President & CEO
303.584.0606
[email protected]
Matias Herrero
Chief Financial Officer
303.584.0606
[email protected]
