Timmins Gold Corp. is pleased to announce that it has closed the acquisition from a Mexican subsidiary of Goldcorp Inc. of the complete process plant and select auxiliary equipment used in the operation of Goldcorp's El Sauzal Mine in Chihuahua, Mexico.
The El Sauzal Mine was operational until December 2014 when it began its closure. The Plant has been be acquired by Timmins Gold for future use at its recently acquired Ana Paula project in Guerrero, Mexico.
The total purchase price of C$8.0 million to be paid by Timmins Gold to Goldcorp for the Plant consists of the following:
- C$1.0 million in cash which was paid on closing;
- C$3.0 million which was satisfied by the issuance of 10 million common shares in the capital of Timmins Gold at a price of C$0.30 per share on closing; and
- C$4.0 million in cash payable to Goldcorp one year from closing.
The common shares issued will be subject to a hold period expiring 4 months and one day from closing.
The closing of the Plant Acquisition was subject to, among other things, the completion of a C$6.0 million private placement by Goldcorp in Timmins Gold which closed on October 19, 2015.
As a result of the Plant Acquisition and private placement, Goldcorp will hold approximately 9.9% of Timmins Gold's issued and outstanding common shares on an undiluted basis.