True Gold Mining Reports First Quarter 2013 Financial Results
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/28/13 -- True Gold Mining Inc. (TSX VENTURE: TGM) ("True Gold" or the "Company") is pleased to announce financial results and business highlights for the three-month period ending March 31, 2013, including advancement at the Company's Karma Gold Project ("Karma") in Burkina Faso, West Africa and new exploration and drill programs at Karma and the Liguidi Project ("Liguidi").
Subsequent to quarter-end, True Gold raised $10 million via a non-brokered private placement with Teck Resources Limited. Proceeds of the financing will allow True Gold to ramp up exploration efforts to demonstrate potential for resource growth at Karma and systematically test priority targets at Liguidi.
First-quarter 2013 highlights and significant subsequent events include:
-- Raised $10 million, with proceeds earmarked for exploration and working
capital purposes(1).
-- Received Burkina Faso government authorization for and began
construction of a fresh-water reservoir(2).
-- Released positive drill results from metallurgical core drilling at all
five Karma deposits(3).
-- Released update on the independent feasibility study for Karma(4),
noting progress in areas such as geotechnical work, hydro-geology
studies, and mettalurgical core drilling.
(1) See True Gold news releases dated May 8, 2013 and May 9, 2013
(2) See True Gold news release dated March 25, 2013 titled True Gold Receives Approval to Construct Reservoir
(3) See True Gold news releases dated March 13, 2013 (Kao, Nami); March 6, 2013 (Goulagou); and February 27, 2013 (Rambo).
(4) The 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. See True Gold news release dated March 27, 2013 titled Karma Project Update: Activities Related to Feasibility Study Progressing.
Selected financial data
The following selected financial data is derived from our unaudited condensed interim consolidated financial statements for the three month period ended March 31, 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 three months ended March 31, 2013.
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3 months ended
March 31, 2013 April 30, 2012
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Net income (loss) for the period $ (1,821,728) $ 83,607
Income (loss) and comprehensive loss for the
period $ (2,124,438) $ (11,377,393)
Basic and diluted income (loss) per share $ (0.01) $ 0.00
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As at
March 31 December 31
2013 2012
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Cash and short term investments $ 11,874,950 $ 18,889,633
Working capital $ 11,359,549 $ 16,710,450
Total assets $ 84,261,105 $ 87,597,097
Current liabilities $ 1,027,180 $ 2,584,366
Shareholders' equity $ 79,021,925 $ 80,163,731
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For the three month period ended March 31, 2013, we reported a net loss of $1.8 million, compared to net income of $0.1 million for the three month period ended April 30, 2012 mainly due to an increase in corporate activity in the current period and the recognition of a non-recurring net gain of $1.7 million realized on the disposition or Roxgold common shares which offset expenses in the comparative period. The most significant contributions to the loss for the three month period ended March 31, 2013 were the cost of salaries and benefits of $0.7 million (2012: $0.4 million), stock-based compensation of $0.6 million (2012: $0.3 million), travel and accommodation of $0.3 million (2011: $0.1 million), professional fees of $0.2 million (2011: $0.2 million), office and general of $0.2 million (2012: $49,821), and rent of $0.1 million (2011: $10,937). Expenses for the three month period ended March 31, 2013 were offset by a deferred tax recovery of $0.6 million (2012: $56,000).
Total assets as at March 31, 2013 have decreased since December 31, 2012 by ($3.3) million to $84.3 million, due to a decrease in cash and short term investments reflecting cash outflows from corporate activities through the three months ended March 31, 2013. This decrease was partially offset by an increase to capitalized exploration and development costs due to the on-going investment in the Company's exploration and evaluation assets.
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 March 31, 2013. These documents can be found on the Company's website (www.truegoldmining.com) or under the Company's profile on SEDAR at www.sedar.com. All amounts are presented in Canadian dollars unless otherwise stated.
Ian Cunningham-Dunlop, P. Eng., is the Company's Senior Vice President Exploration and designated Qualified Person within the meaning of NI 43-101, for this news release and has reviewed and verified that the scientific and 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 www.truegoldmining.com and under the Company's profile at www.sedar.com.
ON BEHALF OF THE BOARD
Dwayne Melrose, President & CEO
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 February 27, 2013; March 6, 2013; March 13, 2013; March 25, 2013; March 27, 2013; March 30, 2013; May 8, 2013; and May 9, 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 www.sedar.com. 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.
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.
Contacts:
True Gold Mining Inc.
Vancouver Office:
604-801-5020
info@truegoldmining.com
True Gold Mining Inc.
Investor Inquiries:
Alex Holmes
604-632-4677
aholmes@truegoldmining.com
True Gold Mining Inc.
Media Inquiries:
Ian Noble
604-809-8750
inoble@truegoldmining.com
www.truegoldmining.com
