VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 11/26/13 — True Gold Mining Inc. (TSX VENTURE: TGM) („True Gold“ or the „Company“) is pleased to announce financial results for the third quarter ending September 30, 2013 and business highlights to date, including advancements at the Company-s Karma Gold Project („Karma Project“) in Burkina Faso, West Africa.
Third quarter 2013 highlights and significant subsequent events include:
Selected financial data
The following selected financial data is derived from our unaudited condensed interim consolidated financial statements for the nine month period ended September 30, 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 nine months ended September 30, 2013.
For the period ended September 30, 2013, in order to enhance the relevance to the decision making needs of users, the Company has voluntarily changed its accounting policy with respect to exploration and evaluation expenditures. In prior periods the Company-s policy was to capitalize by property all costs related to exploration and evaluation of mineral properties classified as exploration and evaluation assets. The Company has elected to change this accounting policy to now expense exploration expenditures as incurred, effective with the presentation of the unaudited condensed interim consolidated financial statements for the nine month period ended September 30, 2013, on a retrospective basis. The Company will continue to defer acquisition expenditures on mineral properties until such time as the properties are put into commercial production, sold, abandoned or become impaired.
For the three and nine month period ended September 30, 2013, we reported a net loss of $7.8 million and $22.8 million respectively, compared to net losses of $2.5 and $21.6 million for the three month and nine month period ended October 31, 2012. The most significant contributions to the loss for the three and nine month periods ended September 30, 2013 were the cost of ongoing exploration of $6.2 and $15.9 million respectively (2012: $4.9 million and $16.7 million) and salaries and benefits of $0.6 million and $1.9 million respectively (2012: $0.8 million and $1.6 million).
Total assets as at September 30, 2013 have increased since December 31, 2012 by $5.7 million to $51.2 million, mainly due to an increase in cash and short term investments reflecting cash inflows from financing transactions through the nine months ended September 30, 2013. This increase was partially offset by a decrease in capitalized exploration and evaluation asset acquisition costs relating to the Liberty 2% net smelter return royalty on the Company-s interest in the Karma Gold Project for $6.0 million, which was recorded as a recovery to acquisition costs.
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 September 30, 2013. These documents can be found on the Company-s website () or under the Company-s profile on SEDAR at . All amounts are presented in Canadian dollars unless otherwise stated.
Peter C. Carter, P. Eng., Chief Operating Officer and Vice President Engineering of the Company, is the Company-s designated Qualified Person within the meaning of NI 43-101 for this news release, and has reviewed and verified that the 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 profitable 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 and under the Company-s profile at .
ON BEHALF OF THE BOARD
Dwayne Melrose, President & CEO
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.
Certain statements made and information contained in this news release and elsewhere constitutes „forward-looking statements“ and „forward-looking information“ within the meaning of Canadian securities legislation. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may constitute forward-looking statements. 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 materially from those reflected in the forward-looking statements and forward-looking information, including, without limitation, with respect to statements regarding receipt of final exploitation permits, timing for and completion of the Feasibility Study, the assumptions set forth in this news release and in the Company-s news releases of July 15, 2013, August 29, 2013, September 17, 2013, September 20, 2013, October 17, 2013 and November 3, 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 the Karma Project 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 . Forward-looking statements and 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. The Company undertakes no obligation to update any of the forward-looking statements or forward-looking information in this presentation, other than as may be required by applicable laws.
Contacts: True Gold Mining Inc. Vancouver Office: 604-801-5020
True Gold Mining Inc. Investor inquiries: Alex Holmes 604-632-4677
True Gold Mining Inc. Media inquiries: Ian Noble 604-801-5020
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