‘High Grade Is A Wonderful Thing’
Fred Stanford Talks About Torex’s $380M Financing and Bankable Feasibility
Kevin Michael Grace
November 6, 2012 - Torex Gold Resources Inc T.TXG announced October 23 it had closed a $380-million bought-deal share offering (including a $30-million oversubscription) to finance its Morelos Gold Project, 180 kilometres southwest of Mexico City, and working capital.
Morelos contains proven and probable reserves of 48.8 million tonnes grading 2.61 grams per tonne gold and 4.35 g/t silver for 4.09 million ounces gold and 6.81 million ounces silver. According to a bankable feasibility study announced September 4, based on $1,276-per-ounce gold, Morelos is scheduled to begin production in 2015 and produce 3.47 million ounces over 10.5 years at $421 per ounce, with cumulative cashflow of $1.56 billion. The initial CAPEX is $552 million; the aftertax net present value (NPV) is $900 million (at a 5% discount); the aftertax internal rate of return (IRR) is 24.9%; and the payback period is 3.6 years.
President/CEO Fred Stanford was interviewed by Kevin Michael Grace October 30, read it here.