more he said she saidTimmins Gold investor displeased with financing refusal
2009-05-19 10:31 ET - News Release
Ms. Susan McArthur of Jacob & Company, adviser to Pacific Road, reports
SUBSTANTIAL SHAREHOLDER OF TIMMINS GOLD IS CONCERNED MANAGEMENT'S ACTIONS HAVE DECREASED SHAREHOLDER VALUE
Late in the day on May 15, 2009, management of Timmins Gold Corp. disseminated a news release in Stockwatch containing a number of items of concern to Pacific Road Capital Management (Pacific Road), manager of funds which have invested $19.3-million of equity in Timmins.
In its press release dated May 15,2009, Pacific Road indicated it had made a superior offer (the "Offer") to provide up to $7.5 mm of equity to Timmins in order expedite bringing into production the San Francisco Gold property located near Hermosillo, Mexico. Pacific Road had no intention of making a takeover bid for the Company, any suggestion of such a motive would be misleading. As an investor, not an operator, Pacific Road has no mandate to takeover Timmins. Any suggestion of such a motive would be misleading.
Pacific Road's original investment in Timmins (announced in July 2008) required shareholder approval as per TSX Venture Exchange policies. Pacific Road received approval for its investment from Timmins shareholders at the Company's AGM in August 2008. It is unreasonable for Timmins management to put forth the position that the TSX Venture Exchange would not be willing to work with Timmins and Pacific Road to explore options for an expedited investment for the essential funding of the Company.