Canadian Mining Journal


GOLD: Timmins Gold raises $20M for Ana Paula project

VANCOUVER – Timmins Gold Corp. has entered into an agreement with a syndicate of underwriters led by National Bank Financial and RBC Capital Markets. Under terms of the agreement, the underwriters will purchase, on a bought deal basis, 36.4 million units of the Timmins Gold at a price of $0.55 per unit for gross proceeds of approximately $20 million.

Each unit consist of one Timmins Gold common share and one-half a share purchase warranted. Each warrant will entitle the holder to acquire one common share at a price of $0.70 within 18 months of the closing. The underwriters have also been ranted a 15% over-allotment.

Timmins Gold intends to use the net proceeds primarily for exploration and pre-construction at the Ana Paula gold project in Guerrero state, Mexico, roughly halfway between Mexico City and Acapulco.

Mineralization at Ana Paula is mainly associated with arsenopyrite and pyrite, with the dominant mineralization style appearing to be epithermal with brecciation observed at contact zones. The gold mineralization at the project is hosted in a high grade hydrothermal breccia surrounded by a lower-grade alteration halo hosted in intrusive, hornfels, skarn, contact breccia and sedimentary rocks, according to the company’s website.

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