TORONTO, ONTARIO--(Marketwire - Dec. 16, 2011) - Torex GoldResources Inc. (the "Company" or "Torex") (TSX:TXG) is pleased to announce thatits wholly owned subsidiary, Minera Media Luna S.A. de C.V., has signed a longterm, common land lease agreement with the Rio Balsas Ejido for the use of 507hectares of land, for the future construction, mining, and processing of gold atits Morelos Gold Project in Guerrero State, Mexico.
In addition, the Company has also signed long term lease agreements for 77individually 'owned' land parcels (additional 576 hectares), under the sameterms as the common land leases. Work is underway to resolve certainadministrative issues, such as succession rights and absentee ownership; so thatagreements on 10 additional individually 'owned' land parcels can be finalizedand executed.
The terms of the lease agreements are believed to be comparable to long termlease agreements signed by other operating mining companies in the area. Thelease agreements are for 30 years with annual payments of 23,000 pesos perhectare during the first two years and then for the next 13 years, theequivalent, in pesos, of 2.5 troy oz of gold per hectare, calculated at theannual average gold price published by the London Bullion Market Association.Starting in year 16, and every 5 years thereafter, the amount of the annualpayments will be renegotiated.
Fred Stanford, President and CEO of Torex said "We are very pleased that theCompany's ongoing community and social efforts have been extremely successful inestablishing respectful and mutually beneficial relationships between theCompany and the land holders at our Morelos Project. Those extensive effortsfirst enabled the Company to obtain fair and reasonable surface exploration landuse agreements with all the Morelos area ejidos and have now led to the signingof equally fair and reasonable long term land use agreements with the Rio BalsasEjido. The agreements with the Rio Balsas Ejido have secured long term tenurefor approximately 63% of the land required to put the Morelos gold deposits intocommercial production. Negotiations are well underway with the Real del LimonEjido and we are confident that agreements will, in a timely manner, beconcluded to acquire long term land use for the additional required lands andthe relocation of two small villages."
The Company expects to complete several additional important milestonesduring 2012, including: the signing of long term land lease agreements with theReal del Limon Ejido which will result in the Company having agreements in placeon all lands required to put the property into commercial production,publication of updated resource estimates by the end of March, completion of abankable feasibility study by the end of June, receipt of all required permits,arrangements for project financing and the commencement of project development,if warranted. The company currently has over $110 million in the treasury and isfully funded to continue aggressively exploring the property for new depositsand to conduct all activities required to make a positive production decisionincluding the early purchase of long lead time items.
Torex Gold Resources Inc. is a well funded, growth-oriented, Canadian miningcompany engaged in the exploration and development of precious metal resourceswith a focus on gold. It owns 100% of the Morelos Gold Project, an advancedstage gold exploration property, located 180km southwest of Mexico City in thehighly prospective Morelos Gold Belt. The project covers an area of 29,000ha ofwhich more than 75% remains unexplored.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
Except for statements of historical fact relating to the Company, certaininformation in this press release constitutes "forward-looking information"within the meaning of applicable Canadian securities legislation.Forward-looking information includes, but is not limited to, information withrespect to future exploration, development and production plans concerning theMorelos Gold Project, expected drilling results and updated resource estimates,and the timing within which the Company expects to receive drilling results,anticipated timing for the completion of a bankable feasibility study and othertechnical studies on the project, expected timing for project commissioning andexpected securing of long term tenure to additional land required for potentialfuture operations through successful negotiations with the Ejidos and otherlocal landowners. Generally, forward-looking information can be identified bythe use of forward-looking terminology such as "plans", "expects", "estimates","intends", "anticipates" or "believes" or variations of such words and phrasesor state that certain actions, events or results "may", "could", "would","might", or "will be taken", "occur", or "be achieved". Forward-lookinginformation is based on the reasonable assumptions, estimates, analysis andopinions of management made at the date that such statements are made.Forward-looking information is subject to known and unknown risks, uncertaintiesand other factors that may cause the actual results, level of activity,performance or achievements of the Company to be materially different from thoseexpressed or implied by such forward-looking information, including but notlimited to risks related to: unexpected events and delays impacting the timingof future drill programs, completing of a bankable feasibility study, othertechnical studies and an updated resource estimate for the Morelos Gold Project;the possibility that anticipated exploration results will not be consistent withthe Company's expectations; defects in the title held by landowner; successfullynegotiating with the Ejidos, and other local landowners, to secure long termtenure to other land required for potential future operations; as well as therisk factors disclosed in the Company's Annual Information Form and Management'sDiscussion and Analysis for the year ended October 31, 2010 and other publicdisclosure available at www.sedar.com. Accordingly, readers should not placeundue reliance on forward-looking information. The forward-looking informationcontained herein is presented for the purposes of assisting investors inunderstanding the Company's plans, objectives and operations and may not beappropriate for other purposes. The Company does not undertake to update anyforward-looking information, except in accordance with applicable securitieslaws.