Timberline Resources Completes Definitive Agreement To Sell Its Contract Drilling Subsidiary
27 10월 2011 - 9:00PM
Marketwired
Timberline Resources Corporation (TSX VENTURE:TBR)(NYSE Amex:TLR)
("Timberline" or the "Company") announced today that it has
completed the negotiations and executed the definitive agreement
for the sale of its wholly-owned contract drilling subsidiary,
Timberline Drilling, Inc. ("TDI"). The sale, which is expected to
close within the next week, is to a private company formed by a
small group of investors, including TDI's current senior management
team. No management or directors of Timberline Resources are
affiliated with the buyer.
The sale is valued at over $13 million, subject to closing
adjustments, and will allow Timberline to:
-- add over $10 million in near-term cash to its treasury
-- use a portion of the cash received to repay its $5 million convertible
debt obligation and, with the assumption of all TDI debt by the
purchaser, become debt-free;
-- focus on the Company's core business of gold exploration, development,
and production;
-- retain certain strategic benefits of owning the drilling subsidiary by
entering into an agreement with the purchaser to provide future core
drilling services to Timberline at below-market prices;
-- accelerate drilling and exploration at its district-scale South Eureka
(Nevada) gold property.
Paul Dircksen, Timberline's President and CEO, commented, "We
believe that our core business of gold exploration, development,
and production is and should be, our sole focus. We expect
near-term cash flow from gold production at our Butte Highlands JV
project in Montana, and our expanding gold resource and development
potential at our South Eureka property in Nevada are particularly
exciting in this environment of elevated gold prices. The cash from
this sale, along with the significant savings in future core
drilling costs, will facilitate the expedited advancement of our
properties."
The Company decided to move forward with this sale after an
extensive process that included in-depth discussions with other
potential purchasers and an evaluation of the transaction relative
to the current valuations of public companies in the drilling
sector. Paradigm Capital of Toronto acted as the Company's
financial advisors related to this transaction.
About Timberline Resources
Timberline Resources Corporation is exploring and developing
advanced-stage gold properties in the western United States. The
Company is primarily focused on the goldfields of Nevada, where it
is advancing its flagship Lookout Mountain Project toward a
production decision while exploring a pipeline of quality
earlier-stage projects at its South Eureka Property and elsewhere.
Timberline also features a 50-percent carried-to-production
interest at its Butte Highlands Joint Venture where gold production
is slated to commence early in 2012. Timberline management has a
proven track record of discovering economic mineral deposits and
developing them into profitable mines.
Timberline is listed on the NYSE Amex where it trades under the
symbol "TLR" and on the TSX Venture Exchange where it trades under
the symbol "TBR".
Statements contained herein that are not based upon current or
historical fact are forward-looking in nature. Such forward-looking
statements reflect the Company's expectations about its future
operating results, performance and opportunities that involve
substantial risks and uncertainties. These statements include but
are not limited to statements regarding the timing, terms and value
of the Company's sale of Timberline Drilling, the timing or results
of the Company's drill programs at Butte Highlands and South
Eureka, the timing of assay results from such drilling programs
being released, the district-scale potential of the South Eureka
project, the expansion of the mineralization at the South Eureka
project, the timing of a production decision at the South Eureka
project, the Company's 50/50 joint venture with Highland Mining
LLC, the development and production of the Company's Butte
Highlands project and South Eureka project, the targeted production
date for the Butte Highlands project, results of the Company's
drilling subsidiaries, possible growth of the Company and the
Company's expected operations. When used herein, the words
"anticipate," "believe," "estimate," "upcoming," "plan," "intend"
and "expect" and similar expressions, as they relate to Timberline
Resources Corporation, or its management, are intended to identify
such forward-looking statements. These forward-looking statements
are based on information currently available to the Company and are
subject to a number of risks, uncertainties, and other factors that
could cause the Company's actual results, performance, prospects,
and opportunities to differ materially from those expressed in, or
implied by, these forward-looking statements. Factors that could
cause or contribute to such differences include, but are not
limited to, risks related to the timing and completion of the
drilling programs at Butte Highlands and South Eureka, risks and
uncertainties related to mineral estimates, risks related to the
inherently dangerous activity of mining, and other such factors,
including risk factors discussed in the Company's Annual Report on
Form 10-K for the year ended September 30, 2010. Except as required
by Federal Securities law, the Company does not undertake any
obligation to release publicly any revisions to any forward-looking
statements.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Timberline Resources Corporation Paul Dircksen CEO
208.664.4859
Timberline Resources (QB) (USOTC:TLRS)
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