Asset sale to cover $10 million impending debt dueWe told you it would either be a financing or an asset sale. that just covers the debt. They will still need another financing to cover any development.
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.