Timmins Gold to Sell Caballo Blanco Gold Project
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 11, 2016) - Timmins Gold Corp. (TSX:TMM)(NYSE MKT:TGD) ("Timmins" or the "Company") is pleased to announce it has entered into a definitive agreement with Candelaria Mining Corp. ("Candelaria") to sell 100% of its interest in the Caballo Blanco Gold Project ("Caballo Blanco") in Veracruz, Mexico for cash consideration of US$12.5 million and the assumption of the US$5.0 million contingent payment.
Under the terms of the definitive agreement, Timmins will sell its interest in Caballo Blanco for aggregate consideration of:
- US$3.5 million in up-front execution payments (US$1.25 million received upon signing, US$2.25 million within 15 business days post signing; the execution payments are non-refundable if counterparty fails to close)
- US$6.5 million payment upon closing on or before June 24, 2016
- US$2.5 million payment at the earlier occurrence of Candelaria receiving permits or June 24, 2017
- Candelaria assumes the US$5.0M contingent payment obligation to Goldgroup Mining Inc.
"The sale of the Caballo Blanco project for a total consideration of US$17.5 million is a significant event for Timmins Gold," stated Mark Backens, Interim CEO. "The cash proceeds from this sale will strengthen our balance sheet which will enable settlement of our secured debt."
Completion of the transaction is subject to customary closing conditions, including approval of the regulatory authorities.
About Timmins Gold
The Company owns and operates the San Francisco open pit, heap leach gold mine in Sonora. The Company is also focusing on developing the Ana Paula gold project in the Guerrero Gold Belt.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) nor the New York Stock Exchange MKT accepts responsibility for the adequacy or accuracy of this news release.
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Contact
Timmins Gold Corp.
Mark Backens
Interim CEO and Director
604-682-4002
mark.backens@timminsgold.com
www.timminsgold.com