Timberline Completes Sale of Its Contract Drilling Unit and Retires All Debt; Focused on Advancing Exploration, Development, ...
15 11월 2011 - 10:00PM
Marketwired
Timberline Resources Corporation (TSX VENTURE:TBR)(NYSE Amex:TLR)
("Timberline" or the "Company") announced today that it has closed
the sale of its wholly-owned contract drilling subsidiary,
Timberline Drilling, Inc. ("TDI") to a group of private investors
that includes TDI's current senior management team. No management
or directors of Timberline Resources are affiliated with the buyer.
Paradigm Capital of Toronto acted as the Company's financial
advisors related to this transaction.
The sale is valued at over $14.5 million, subject to working
capital adjustments. Timberline received $8 million in cash plus an
additional $2 million in cash from the existing working capital of
TDI. Within 60 days, there will be a final working capital
adjustment which is expected to yield over $1 million in cash to
Timberline. The Company also received an 18-month note payable in
the amount of $1.35 million at 10-percent interest, and will
receive discounted drilling services (or cash) in the amount of
$1.1 million over 5 years. The buyer also assumed over $1 million
in debt of TDI.
Concurrent with the closing, Timberline repaid its $5 million
convertible debt obligation and is completely debt-free. The
Company will now focus exclusively on its core business of gold
exploration and development as it advances its Butte Highlands and
South Eureka properties toward production.
Paul Dircksen, Timberline's President and CEO, said, "We are
pleased to close the sale of TDI so that we can concentrate on
advancing our properties, expanding our gold resource base at South
Eureka, and achieving production at Butte Highlands. The
shareholder value that can be realized through our core business is
extremely compelling and is now our sole focus. With near-term cash
flow expected from Butte Highlands, we are well-positioned to take
advantage of elevated gold prices."
At the Butte Highlands Joint Venture in southwestern Montana,
Timberline recently completed a 50,000 foot underground drill
program, improving the quality and reliability of the mine model as
the Company and its joint venture partner move into production.
Timberline holds a 50-percent carried-to-production interest in
Butte Highlands, where gold mining operations are scheduled to
commence early next year.
At Timberline's 23-square mile South Eureka property, the 2011
exploration drill program was recently increased by 50-percent to
45,000 feet. The gold grades, mineral continuity, and positive
metallurgical characteristics reported to date at South Eureka
strongly support the Company's stated objective of increasing the
gold resource at Lookout Mountain and advancing toward development
of a low capital, low cost, heap leach gold operation.
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)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Timberline Resources (QB) (USOTC:TLRS)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024