Timmins Gold Extends Sprott Resource Facility
Timmins Gold agreed to an extension to the term of its existing $13 million credit facility with Sprott Resource Lending Partnership. The extension is subject to final documentation.
The new credit agreement will have a term of 12 months from January 1, 2015. Interest remains payable at the rate of 9% per annum. Payment of the principal amount outstanding will be made at the end of the term. In consideration of the extension, the company shall pay a bonus to Sprott on the Extension Date in the amount of $130,000 payable at the option of the company with 2 business days’ notice, in either the USD equivalent in cash, or in common shares of the Company at a deemed price equal to a 5% discount to the five day volume weighted average trading price on the TSX for the five trading days immediately prior to the Extension Date. Any shares issued shall be subject to a four month hold period.
“The extension of our credit agreement allows Timmins Gold to retain a strong cash balance and financial flexibility and will allow us to advance our projects, including the recently acquired Caballo Blanco project,” stated Bruce Bragagnolo, CEO of Timmins Gold Corp. “We are pleased to continue our excellent relationship with Sprott Lending.”
Timmins Gold is in commercial gold production at its wholly owned San Francisco Gold Property in Sonora, Mexico. The mine is an open pit heap leach operation from which Timmins Gold has projected production of 115,000 to 125,000 ounces of gold in 2014 at a cash cost of $800 per ounce.