Tirex Arranges $7.7 Million Financing
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 5, 2012) - Tirex Resources Ltd. (TSX VENTURE:TXX)(OTCQX:TIRXF) ("Tirex") is pleased to announce it has arranged a $7.7 million financing. This financing puts Tirex in excellent financial condition as the company plans to target new discoveries concurrent with the commencement of gold and copper production as detailed in Tirex News Release dated October 29, 2012.
Tirex has more than 40 high priority airborne electromagnetic (EM) anomalies at Mirdita and has identified six exploration areas for immediate ground geophysical surveying and drilling, outside of the Mining Partnership zones. These targets have been defined and refined through a combination of airborne geophysical survey, ground geophysical surveys, geochemical work, geological mapping and historical data analysis.
The financing will be completed via the issuance of 11 million common shares at $0.70 per share, in an institutional non-brokered private placement. In addition to the $7.7 million being raised via this private placement, Tirex has approximately $1.91 million undrawn under its facility with the European Bank for Reconstruction and Development ("EBRD").
Tirex's transition into production, as previously announced, is non-dilutive as the company has access to mill capacity and underground mine development capital via a mining partnership. This equity financing will be used for exploration.
While robust cash flow from gold and copper production is targeted, Tirex remains committed to also growing shareholder value through discovery. To date, Tirex drilling in Mirdita has included thick intercepts of high grade mineralization including 65m of 0.6% Cu, 9.0% Zn, 48.4 g/t Ag and 2.7 g/t Au (Koshaj); 7.7m of 5.23% Cu, 1.84% Zn, 57.0 g/t Ag and 4.6 g/t Au (Gurthi); 19.3m of 3.66% Cu, 1.13% Zn, 8.3 g/t Ag and 1.2 g/t Au (Gurthi); and 46m of 0.7% Cu, 2.68% Zn, 20.8g/t Ag and 1.6 g/t Au (Letitna). In addition to completing important corporate appointments during the past year (Mr.Fred Tejada to the position of President, Mr. Jeffrey Griffin as director and Mr. Jeffrey Steiner as Special Advisor), Tirex also completed mining plans for six separate areas of Mirdita and conducted significant data compilation of historical and Tirex results from outside of these six areas which will aid in the discovery-focussed exploration process. It is the belief of the Tirex technical team that Mirdita hosts world class potential.
Tirex Chief Executive Officer, Bryan Slusarchuk, states, "This financing will put Tirex in solid shape as we embark on a most exciting year ahead during which we aim to build value for shareholders through gold and copper production as well as extensive drill testing of high priority targets."
On Behalf of Management,
Fred Tejada, P. Geo, President
Forward-Looking Statements. This News Release may contain certain "forward-looking" statements and information relating to Tirex. Such statements include but are not limited to statements about the exploitation licenses, the Partnership Agreement, the production arrangements and the timing of mine development, and production. Often forward-looking statements or information include words such as "plans", expects", "intends", "anticipates", "estimates" "forecasts", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or will be taken occur or be achieved. Although forward-looking statements and information contained in this release are based on the beliefs of Tirex management, which are considered to be reasonable, as well as assumptions made by and information currently available to Tirex management, there is no assurance that the forward-looking statements or information will prove to be accurate. The forward-looking statements and information contained in this release are subject to current risks, uncertainties and assumptions related to certain factors including, without limitations, obtaining all necessary approvals, feasibility of mine and plant development, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events as well as risks, uncertainties and other factors discussed in our quarterly and annual and interim management's discussion and analysis. Specifically, (i) there is no assurance the private placement will be completed on the basis outlined above, or at all; and (ii) no feasibility study has been completed on any part of the Company's Mirdita project, and there is no certainty the proposed mining operations will be economically viable. Should any one or more of these risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results may vary materially from the forward-looking statements and information described herein. Accordingly, readers should not place undue reliance on forward-looking statements and information contained in this release. We undertake no obligation to update forward-looking statements or information except as required by law.
FOR FURTHER INFORMATION PLEASE CONTACT:
Tirex Resources Ltd.
Fred Tejada, P. Geo