TIMMINS GOLD REPAYS SECURED DEBT
Mr. Mark Backens reports
TIMMINS GOLD REPAYS SECURED DEBT TO SPROTT AND GOLDCORP
Timmins Gold Corp. has repaid its $10.22-million (U.S.) credit facility with lenders Sprott Resource Lending Partnership and Goldcorp Inc. A bonus of $204,450 (U.S.) will be paid to Sprott, and a bonus of $70,416 (U.S.) and 550,000 common shares will be paid to Goldcorp pursuant to the terms of the credit agreement.
“Settlement of this debt is a very significant achievement for Timmins as it has been a top priority to place the company in a stronger financial position going forward,” stated Mark Backens, interim chief executive officer. “With the debt paid off, we gain flexibility and can renew focus on the advancement of the Ana Paula feasibility study and permitting work. Initial funding for this work will be provided by the cash flow generated from the San Francisco mine. We would like to extend our appreciation to both Sprott and our largest shareholder Goldcorp for their support.”
On a related note, Timmins has provided Candelaria Mining Inc. an extension to the closing of the Caballo Blanco transaction from June 24, 2016, to July 7, 2016. As a part of this extension agreement, Candelaria has increased its non-refundable deposit by $3.5-million (U.S.) for a total of $7.0-million (U.S.), which has been received as at June 13, 2016, with the next payment of $3.0-million (U.S.) due on closing. All other terms of the transaction, including the final payment of $2.5-million (U.S.) due on the earlier of receipt of permits for the project and one year from closing, and the assumption by Candelaria of the $5.0-million (U.S.) contingent obligation to Goldgroup Mining Inc., remain unchanged.
