Timmins Gold Announces Re-Financing of Credit Facility With Sprott Resource Lending Partnership and Goldcorp Inc.
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 26, 2016) - Timmins Gold Corp. (TSX:TMM)(NYSE MKT:TGD) (the "Company") is pleased to report that it has finalized an agreement with Sprott Resource Lending Partnership and Goldcorp Inc. (the "Lenders") to re-finance its existing US$10.2 million secured credit facility.
The new credit facility is effective as of January 26, 2016 and has a maturity date of June 30, 2016. Interest is payable monthly at the rate of 12% per annum, and the principal amount outstanding is payable on the maturity date. In consideration of the re-financing, the Company will pay a bonus to the Lenders under the credit facility, in the amount of US$408,901.47 on the earlier of the repayment of the loan and June 30, 2016. The bonus is payable at the option of each Lender, in relation to its proportion of the credit facility, in cash or in common shares of the Company. Any shares issued in connection with the bonus payment shall be issued at a deemed price equal to the volume weighted average price per share on the TSX for the ten days immediately preceding issuance, less 10%.
"This credit facility provides the Company with the time and flexibility required to continue pursuing all available options to build a solid financial foundation," stated Mark Backens, Interim CEO. "We are committed to unlocking and realizing the true value of our asset base to benefit all shareholders."
About Timmins Gold
Timmins Gold is poised to become an emerging intermediate, Mexican-focused gold producer with a portfolio of high-quality production and growth assets all based in Mexico. The Company owns and operates the San Francisco open pit, heap leach gold mine in Sonora which provides a solid base of operations, allowing the Company to develop two economically robust growth projects with manageable capital requirements, the Ana Paula and Caballo Blanco gold projects.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) nor the New York Stock Exchange MKT accepts responsibility for the adequacy or accuracy of this news release.
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