TORONTO, ONTARIO–(Marketwired – Nov. 21, 2017) – Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) issued a statement today in response to misinformation that is being circulated by labour groups and the media.
The Company was made aware of an incident that happened this past weekend in the town of Atzcala, about twenty five minutes (15Km) from its El Limon Guajes Mine (the “ELG Mine”). During this incident, two men were killed in the course of a dispute. Torex confirms that the two men were not employees of the Company.
With regards to operations at the Company’s ELG Mine, there is no strike. There is an illegal blockade. Operations have been shut down at the ELG Mine site since November 3rd as a result of the illegal blockade, which arose because of a dispute between the union that legally represents the Company’s workers (the “CTM Union”) and the union that wants to represent the workers (the “Miners Union”). A majority of the Company’s non-staff employees have signed with the CTM Union. As previously disclosed, there is a government sanctioned process for the Company’s workers to vote on their preferred union and thereby democratically elect the union that will represent them. Torex supports this process and will work with whichever union the workers chose. However, for reasons the Company does not know, the Miners Union chose to organize a blockade of the ELG Mine and threaten the unionized workers to stop all activities. Of the Company’s unionized workers, approximately 15% have been participating in the illegal blockade. The remaining unionized workers continue to be paid at a reduced rate, but have been sent home for safety reasons.
Resolution of this dispute is now in the hands of the Labour Board, which the Company believes is working to engage the parties, including the Miners Union, in the legal process established to resolve this dispute and select a date for the union vote to take place. The federal Gendarmerie continues to be present at the ELG Mine for the protection of the Company’s assets.
Torex is an emerging intermediate gold producer based in Canada, engaged in the exploration, development and operation of its 100% owned Morelos Gold Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometers southwest of Mexico City. Within this property, Torex has the El Limón Guajes Mine, which announced commercial production in March of 2016, the Sub-Sill Project, currently under development, and the Media Luna Project, an early stage development project for which the Company issued a preliminary economic assessment (PEA) in 2015. The property remains 75% unexplored.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This press release contains “forward-looking statements” and “forward-looking information” within the meaning of applicable Canadian securities legislation. Notwithstanding the Company’s efforts, there can be no guarantee that the Company will not face unforeseen delays or disruptions. Forward-looking information also includes, but is not limited to, the availability of the government sanctioned process to resolve the labour dispute, including the vote to elect the union, the outcome of such process, the time period during which operations may be shut down and the circumstances of such shut down. Generally, forward-looking information can be can be identified by the use of forward-looking terminology such “purpose”, “budgeted”, “scheduled”, “potentially”, “proposed”, “pending”, “contemplates”, “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes”, or “subsequent” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur”, or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the activities of the Company to be materially different from those expressed or implied by such forward-looking information, including, without limitation, those risk factors identified in the Company’s annual information form and management’s discussion and analysis. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Although the Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because the Company can give no assurance that such expectations will prove to be correct. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
President and CEO
Torex Gold Resources Inc.
Vice President Investor Relations