Timmins Gold Corp.

TSX VENTURE: TMM

Jan 29, 2010 06:30 ETTimmins Gold Closes USD$15 Million Gold Denominated Financing With Sprott Asset Management LP
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Jan. 29, 2010) – Timmins Gold Corp. (”Timmins Gold”) (TSX VENTURE:TMM) is pleased to announce that it has closed its financing with Sprott Asset Management LP, for and on behalf of certain of the Sprott funds, to provide US$15 million financing in Senior Secured Notes (the “Notes”). The Notes will be used to pay down US$3,500,000 in existing debt, and to pay for existing equipment and general working capital for operations at Timmins Gold’s wholly-owned San Francisco gold project in Sonora, Mexico (”San Francisco” or the “Project”).

The Notes shall be repaid in 12 equal monthly installments commencing in August, 2010. Each payment shall be equal to the value at the time of payment of 1,667 ounces of gold (20,004 ounces total). Timmins Gold has guaranteed a minimum rate of return of 15% per annum. A cash finder’s fee of 2% of the proceeds is payable to an arm’s length party. In addition to the Notes the Noteholders have been granted an aggregate of 3 million share purchase warrants exercisable for a period of 24 months at a strike price of CDN$0.80 per share.

The Notes, the warrants and any shares issued on exercise of the warrants are subject to a hold period expiring May 27, 2010.

With this funding Timmins Gold will imminently be in full production at the San Francisco mine.