Andrew Kaip, BMO Capital Markets (12/24/14) "Timmins Gold Corp. announced that it has completed the purchase of the Caballo Blanco gold project located in Veracruz, Mexico, from Goldgroup Mining Inc. Timmins acquired Caballo Blanco for consideration of US$10M cash and the issuance of 16.1M shares. The company has also agreed to pay an additional US$5M when Caballo Blanco receives approval for its Environmental Impact Statement or if Timmins undergoes a change of control. . .closing of the transaction enables Timmins to begin engaging on the permitting front."
Thibaut Lepouttre, Caesars Report (12/22/14) "Timmins Gold Corp., which has been operating the San Francisco gold mine in northern Mexico, has announced it has negotiated an agreement with Goldgroup Mining whereby Timmins will purchase the Caballo Gold project in Mexico's Veracruz state. . .this deal of up to $30M seems very fair. . .Timmins isn't paying top dollar for a very promising property."
Ovais Habib, Scotia Capital (12/18/14) "Timmins Gold Corp. has entered into an agreement to purchase 100% of the Caballo Blanco gold project from Goldgroup Mining Inc. The initial purchase price is ~$25M ($10M in cash and about ~16.1M Timmins common shares). . .we view the acquisition positively. . .on an standalone basis, we estimate the deal is 8% NAV accretive."
Derek Macpherson, M Partners (12/18/14) "Timmins Gold Corp. announced that it has agreed to acquire the Caballo Blanco gold project from Goldgroup Mining Inc. . .at first glance, the deal structure and acquisition price appear attractive. The company acquired Caballo Blanco for $10M in cash and 16.065M Timmins shares, which equates to $14.6M at yesterday's close."
Andrew Kaip, BMO Capital Markets (12/18/14) "Timmins Gold Corp. announced plans to acquire 100% of the Caballo Blanco gold project, located in Veracruz state, Mexico, from Goldgroup Mining Inc. for $10M in cash and 16M Timmins shares and a further $5M upon permitting. . .acquisition of the Caballo Blanco project looks to provide the company with a reasonably priced growth strategy that: 1) leverages its operational capabilities learned at the San Francisco heap-leach mine, 2) offsets single mine risk and 3) is potentially accretive to NPV
