Timmins Gold Corp. (TSE: TMM) has expanded its Mexico operations with the $10 million purchase of the Caballo Blanco Gold Project.
The gold development project, located in Veracruz State, Mexico, is well-established and a low-risk mining jurisdiction, according to Timmins CEO Bruce Bragagnolo.
Caballo Blanco is now a wholly owned asset of Timmins' Mexican subsidiary.
The puchase price also includes the issuance of roughly 16 million Timmins shares, which are subject to a 4 month hold period expiring April 24, 2015. Timmins Gold has also agreed to 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.
For more coverage on mining, see Iamgold CEO Predicts Deal in 2015 Amid Slump.