Canadian Mining Journal

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MERGER: Timmins Gold, Newstrike Capital to combine

VANCOUVER – Timmins Gold Corp. and Newstrike Capital have reached an agreement to allow Timmins gold to acquire all of the issued and outstanding common shares of Newstrike by way of a court approved plan of arrangement.



VANCOUVER – Timmins Gold Corp. and Newstrike Capital have reached an agreement to allow Timmins gold to acquire all of the issued and outstanding common shares of Newstrike by way of a court approved plan of arrangement.

The combination of the two companies will create an intermediate gold producer focused on Mexico. The flagship property will be Timmins Gold’s San Francisco mine that has a life of eight more years. Growth is expected from Newstrike’s Ana Paula project and Timmins Gold’s Caballo Blanco project.

Newstrike shareholders will receive 0.9 of a Timmins Gold share plus $0.0001 in cash for each Newstrike share they hold, representing a price of $1.15 per Newstrike shares. The transaction has a total value of $140 million. In connection with the arrangement, Timmins Gold will issue new shares at a price of $1.25 each up to an aggregate amount of $10 million.

Details of the transaction are available at either TimminsGold.com or NewstrikeCapital.com