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Additional Information
Market: TSX
Sector: Gold Mining
EPIC: TMM
Latest Price: 2.82  (-3.09% Descending)
52-week High: 3.34
52-week Low: 1.77
Market Cap: 389.91M
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Timmins Gold Corp
www.timminsgold.com

Timmins Gold Corp. is strategically positioned for continuous growth as a gold production and development company. Focused solely in Mexico, Timmins Gold has begun production at its wholly owned San Francisco Gold Mine in Sonora.

Timmins Gold’s objective is to expand the current reserves and the lifespan of the San Francisco Mine, advance its other gold exploration projects and make strategic acquisitions. The combination of production and advanced exploration positions Timmins Gold for future growth and increased shareholder value.

Full Timmins Gold Corp profile here
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Timmins Gold completes US$15 million financing with Sprott Asset Management

29th Jan 2010, 11:58 am
Timmins Gold completes US$15 million financing with Sprott Asset Management

Timmins Gold (TSX-V: TMM) has closed its financing with Sprott Asset Management (TSX: SII), for US$15 million in Senior Secured Notes. Timmins Gold will use the additional capital to pay US$3.5 million in existing debt and to pay for existing equipment and general working capital for operations at Timmins Gold's San Francisco gold project in Sonora, Mexico.


Timmins will repay the capital in 12 equal monthly instalments starting in August, 2010. Each payment shall be equal to the value at the time of payment of 1,667 ounces of gold (20,004 ounces total). Timmins Gold has also guaranteed a minimum rate of return of 15% per annum.  Sprott Asset Management will also receive 3 million warrants with an exercise price of C$0.80 per share which can be exercised over a period of 2 years.


Timmins Gold is currently ramping up to full commercial production at the mine, which is a past-producing open pit heap leach operation from which Timmins Gold has projected production at a rate in excess of 80,000 oz of gold per year. Initial capital costs of mine development are estimated at US$33.8 million, sustaining capital costs at US$12.7 million for total cash operating costs of US$412 per oz of gold.


The San Francisco gold mine is situated on a 42,000 hectare land package. The mine’s total resource currently stands at 5.35 Mt (million tonnes) grading at 0.91 g/t (grams per tonne) of gold for 157,000 ounces in the measured category, 22.65 Mt grading 0.78 g/t gold for a total 560,000 ounces in the indicated category for a total measured and indicated resource of 0.72 million ounces. The inferred resource amounts to 2.51 Mt grading 0.79 g/t of gold for 63,500 ounces.

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