Private placement Closed 5 MillionTimmins Gold Corp.: $5,000,000 First Tranche of Private Placement Closed
Tuesday June 17, 8:30 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Jun 17, 2008 -- Timmins Gold Corp. ("Timmins Gold") (CDNX:
TMM.V -
News) announces that further to its news release dated May 29, 2008, it has closed the first tranche of $5,000,000 from the $19,300,000 private placement with the Pacific Road Resources Funds.
The first tranche consisted of the issuance of 4,000,000 common shares at a price of $1.25 per share for gross proceeds of $5,000,000. The common shares are subject to a hold period expiring on October 11, 2008. A finder's fee of 4.25% of the proceeds of the first tranche was paid to arm's length parties.
The second tranche of $14,300,000 is scheduled to close on or before July 18, 2008. Timmins Gold has agreed to take actions to create a class of convertible preference shares to accommodate the investment. The key features of the convertible preference shares are that they will be non-voting, non dividend paying, will be convertible into common shares for no additional consideration and will rank equally in all other material respects with the common shares of Timmins Gold.
The proceeds of the first tranche financing will be used to provide part of the payment for the purchase of the secondary and tertiary crushing systems and general working capital including drilling.