Timmins Gold has agreed to buy the complete process plant and select auxiliary equipment used in the operation of Goldcorp’s El Sauzal mine in Chihuahua, Mexico for relocation to Timmins’ Ana Paula project, currently being developed in Guerrero, Mexico. Total purchase price is C$8 million. Closing of the transaction is subject to, among other things, completion of a C$6 million investment by Goldcorp in Timmins Gold by way of a non-brokered private placement.
The El Sauzal mine was operational until December 2014, when Goldcorp began mine-closure activities. The plant has a nominal 6,000-mt/d milling and processing capacity, including a cyanide circuit and a carbon-in-pulp circuit.
Timmins acquired the Paula Ana project when it acquired Newstrike Capital in a transaction that closed in late May.