On site at present, Timmins Gold's mining and crushing operations are continuing with the available Komatsu shovel and six Caterpillar 100 ton trucks until the full mining fleet arrives. Over 100,000 metric tonnes of ore have been stacked on the heap leach pads and gold leaching has begun.
June 01, 2009
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Timmins Gold Corp. ("Timmins Gold") announces that its private placement initiated in March 2009 has been oversubscribed. The private placement was announced at $10 million at a price of $0.40 per unit. Timmins Gold has closed subscriptions and the private placement has been oversubscribed at a total of $15.18 million. Pacific Road Capital Management ("Pacific Road") has agreed to subscribe for $2.98 million to maintain its proportional ownership interest of 19.7%.
Pacific Road Chairman Paul Espie stated "Pacific Road and Timmins Gold have resolved their differences and we show our support to Timmins Gold by making our subscription in the financing. This financing allows Timmins Gold to go forward on a solid financial footing."
The proceeds from the private placement will be used to complete construction of the new crushing system and heap leach pads at Timmins Gold's wholly owned San Francisco gold mine in Mexico and for corporate working capital. The San Francisco gold mine is located along the main Pan American Highway approximately 150 km north of Hermosillo, in the State of Sonora, Mexico. The San Francisco gold mine successfully produced gold from an open pit, heap leach operation in the late 1990's. The 80,000 ounce per year project is described in a preliminary feasibility study prepared by Micon International Limited dated March 31, 2008 and revised on January 13, 2009. Please refer to the Company's website at www.timminsgold.com to view recent pictures of the progress of construction at the mine.
Bruce Bragagnolo, LLB.,
Chief Executive Officer
Vancouver, BC, Canada
Tel: (604) 638-8980
mailto:bruce@timminsgold.com
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