Two Vancouver junior gold miners are merging to form a new intermediate Mexico-focused gold mining company.
Timmins Gold Corp. (TSX:TMM) announced February 17 that it will acquire Newstrike Capital Inc. (TSX-V:NES) in a transaction estimated to be worth $140 million. The acquisition is subject to court approval.
Timmins Gold owns one producing gold mine – the San Francisco – and a number of other properties in the exploration stage in Mexico. Newstrike owns four gold and silver properties in Mexico.
Under the agreement, approved unanimously by both companies’ boards of directors, the combined company will be owned approximately 63% by Timmins Gold shareholders and 37% by Newstrike shareholders.
"The combination of Timmins Gold and Newstrike will immediately position Timmins Gold as an emerging intermediate gold company supported by current production and a very attractive pipeline of development projects," Timmins Gold CEO Bruce Bragagnolo said in a press release.
