VANCOUVER — Timmins Gold (TSX: TMM; NYSE-MKT: TGD) is one step closer to production its high grade Ana Paula gold project in Guerrero, Mexico, following an opportune deal with Goldcorp (TSX: G; NYSE: GG) for a mill and processing facility that could cut development costs for the mine by as much as US$60 million.
The deal can be viewed as a major win for the company since it is essentially picking up the bulk of Ana Paula's processing infrastructure at a fraction of the price. Under terms of the deal, Timmins will acquire the majority of equipment from Goldcorp's El Sauzal plant for cash and share consideration of roughly $8 million. The company will pay $1 million in cash up front; $3 million via the issuance of 10 million shares priced at 30¢; and another $4 million in cash in 12 months.
Timmins will be re-locating a nominal 6,000 t/d milling and processing facility with a cyanide circuit and a carbon-in-pulp circuit (CIP), which closely mirrors the flowsheet outlined in Ana Paula's preliminary economic assessment. Timmins picked up the project via a $140-million merger with Newstrike Capital in mid-February.
Read the complete article at NorthernMiner.com/news/ana-paula