VANCOUVER, BRITISH COLUMBIA–(Marketwire -07/11/12)- Timmins Gold Corp. (TMM.TO)(TGD)(TGD) Further to its news release of June 21, 2012, the Company is pleased to announce it has closed the amendment to its C$18 million credit agreement with Sprott Resource Lending Partnership (the “Lender”).
The amended credit agreement has a term of 18 months ending December 31, 2013. Interest is payable in monthly installments at the rate of 8% per annum. Payment of the principal amount outstanding will be made at the end of the term. In consideration of the extension, a bonus payment of 217,918 common shares (the “Bonus Shares”) of Timmins Gold was paid, representing 2% of the principal amount of the loan at a price equal to a 10% discount to the 5 day weighted average trading price on the TSX of the shares of Timmins Gold. The Bonus Shares are subject to a four month hold period expiring November 5, 2012. In the event the loan has not been repaid by July 5, 2013, a further fee of 1% of the loan amount outstanding on that date will be paid to the Lender in common shares (the “Anniversary Shares”) priced at the same discount on that date. The Anniversary Shares, if issued, will be subject to a four month hold period.
About Timmins Gold
Focused solely in Mexico, Timmins Gold Corp. is in commercial gold production at its wholly owned San Francisco gold mine in Sonora, Mexico. The mine is an open pit heap leach operation. Timmins Gold has forecast production at a rate in excess of 100,000 ounces of gold per year. (Micon International NI 43-101F1 Technical Report dated November, 2011).
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