Timmins Gold Corp. (TSE:TMM) said Thursday that it has closed its previously announced brokered private placement of 25.2 million special warrants.
The special warrants, exchangeable into common shares of Timmins, were issued to Pacific Road Resources for a cost of $2.51 each. The private placement was completed today, Timmins said.
Each special warrant gives the holder the right to receive upon exchange, at no additional cost, one common share of Timmins.
The companies hired MPartners and National Bank Financial as agents to sell the shares.
Proceeds will be paid to "Pacific Road Entities" as consideration for delivering the shares to purchasers of the special warrants, upon exchange.
Timmins said in a statement that none of the proceeds will go to the company.
According to the agreement, the Pacific Road Entities and Timmins agreed to each pay 50% of the expected expenses of the offering.
The Vancouver, BC-based company's gold-producing San Francisco mine in Sonora, Mexico is the main cause of its growth, with the open pit heap leach operation having expected annual production of 100,000 ounces of gold per year at a cash cost of $489 per ounce.