Vancouver, British Columbia, May 14, 2018 - TriMetals Mining Inc. (TSX: TMI, OTCQX: TMIAF), (the “Company”), reports the release of its condensed interim consolidated financial statements for the three months ended March 31, 2018 with cash at the end of the quarter of $1.2 million. In this press release, all amounts are expressed in U.S. dollars, unless otherwise indicated.
Highlights for 1Q 2018 and to date:
- The Company has implemented cost reductions to lower corporate overhead since the beginning of the year, resulting in a 34% decrease in general and administrative expenses from the quarterly average of $0.56 million during 2017 to $0.37 million in 1Q 2018;
- A non-brokered private placement was completed for gross proceeds of $1.49 million (Cdn$1.9 million) as announced in the Company’s news releases of March 5, 2018 and February 26, 2018;
- The Company reported positive rock chip sampling results from the South Jumbo and new Homestake targets at the Gold Springs Project as announced in the Company’s news release of April 26, 2018 from a surface sampling program completed at the end of 2017.
During the three months ended March 31, 2018, the Company completed a private placement for gross proceeds of $1.49 million (Cdn. $1.9 million) through the issuance of 12,694,999 units at a price of Cdn. $0.15 per unit.
Exploration spending during the three months ended March 31, 2108 decreased to $0.4 million from $0.63 million incurred in the first quarter in 2017. The 2018 costs included $0.3 million incurred at Gold Springs and $0.1 million incurred at the Escalones property in Chile. Exploration drilling and related exploration costs for the Gold Springs Project, located on the border of Nevada and Utah are capitalized and reported as Deferred Exploration Costs in the Statement of Financial Position.
During the three months ended March 31, 2018, the TSX closing price of the Class B shares (a liability in the financial statements) decreased by Cdn. $0.01 (2017 - decreased by Cdn. $0.03) per Class B share resulting in a non-cash gain of $1.45 million (2017 -$1.9 million).
The priorities of the Company for 2018 continue to be:
- Focusing the Company’s efforts to advance the exploration and geologic understanding of the district-potential at the Gold Springs Project, including expanding the resources along the 5.5-kilometer long Jumbo Trend;
- Unlocking value by facilitating the advancement of the Escalones copper-gold porphyry-skarn project in Chile;
- Participating with the Company’s legal team to resolve the international arbitration against Bolivia and recover full compensation based on the fair market value for the Malku Khota project; and
- Continue to reduce overhead costs throughout the Company while further optimizing the exploration program at the Gold Springs Project, and pursue value-accretive business and strategic capital raising opportunities.
About TriMetals Mining Inc.
TriMetals Mining Inc. (TSX: TMI and OTCQX: TMIAF) 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, U.S.A.
The Company’s Class B shares are listed on the Toronto Stock Exchange under “TMI.B”. Note that the Class B shares have no interest in the properties or assets of the Company other than a collective entitlement to 85% of the net cash after expenses, if any, received by TMI from award or settlement in relation to the Company’s subsidiary’s arbitration proceeding against Bolivia.
Note that the Class B shares have no interest in the properties or assets of the Company other than a collective entitlement 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 (the “Bolivia Arbitration”).
TriMetals Mining Inc. Contact:
President & CEO
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, risks of the mineral exploration industry which may affect the advancement of the Gold Springs project, 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 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.