Timmins Gold Closes Purchase Of Caballo Blanco Gold Project - Quick Facts

(RTTNews) - Timmins Gold Corp.(TMM.TO, TGD) announced that as per the terms of an Asset Purchase Agreement announced on December 18, 2014, with Goldgroup Mining Inc. (GGA.TO) Timmins Gold has completed the purchase of the Caballo Blanco Gold Project, a gold development project in Veracruz State, Mexico. Caballo Blanco is now an asset of Timmins Gold Corp's Mexican unit.

Bruce Bragagnolo, CEO of Timmins Gold, stated, "The acquisition of Caballo Blanco accomplishes our strategic goal of adding a highly prospective gold mining project at an attractive valuation in Mexico, a very familiar, well-established and low-risk mining jurisdiction."

"We believe Caballo Blanco is an extremely promising project, even at current gold prices, and we look forward to optimizing the current PEA mine plan while continuing to execute our growth objectives."

Pursuant to the agreement, Timmins Gold has acquired Caballo Blanco for $10 million in cash plus the issuance of 16.065 million Timmins Gold shares. These shares are subject to a 4-month hold period expiring April 24, 2015.

Also, Timmins Gold would pay to Goldgroup a contingent payment of an additional $5 million when Caballo Blanco receives approval for its Environmental Impact Statement or Timmins Gold undergoes a change of control. The additional payment, if made, can be paid at Timmins Gold's option in cash or Timmins Gold shares.