The Conversation (0)
Timberline Resources Corporation (CVE:TBR) reports that it has signed a non-binding Letter of Intent to sell its wholly-owned contract drilling subsidiary, Timberline Drilling, Inc.
The press release is quoted as saying:
The sale is valued at approximately $13 million, subject to closing adjustments, and will allow Timberline to:
•focus on the Company’s core business of gold exploration, development, and production;
•repay its $5 million convertible debt obligation and, with the assumption of all TDI debt by the purchaser, become debt-free;
•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.
Timberline’s President and CEO, Paul Dircksen says:
“With gold prices exceeding $1,800 per ounce, we believe that the economic potential of our core business is extremely compelling and requires our uncompromised focus. Our advanced exploration at South Eureka entails significant investment as we work to define a major gold deposit, and the sale of TDI will propel us forward in that effort. Furthermore, gold production from the Butte Highlands Joint Venture is expected early next year, rendering cash flow from TDI operations less attractive relative to near-term monetization. We also welcome the opportunity to become a debt-free company. We are very pleased with this agreement and are optimistic that we can successfully close this sale in a timely manner.”
Click here to access the entire news release.
Click here to access Timberline’s company profile.( CVE:TBR)