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.
