Timmins Gold Corp. announced that Sprott Asset Management LP has agreed to provide $15 million senior secured financing to fund the development of Timmins Gold’s San Francisco gold project in Sonora. The financing will consist of the purchase of $15 million in Senior Secured Notes. In addition to the Notes the Noteholders will be granted an aggregate of 3 million share purchase warrants exercisable for a period of 24 months at a strike price of CAD 0.80 per share. The proceeds from the Notes will provide the funding required to advance San Francisco through production. The financing replaces, and comes after credit approval was received for, the project debt facility previously announced by Timmins Gold. This financing provides Timmins Gold with financial and operational flexibility to advance the Project without resort to hedging and other restrictions on operations. The financing is expected to close on or before October 30, 2009, subject to definitive documentation. The Notes shall be repaid in 12 equal monthly installments commencing on the seventh month after the advance of funds. 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 finder’s fee of 2% of the proceeds is payable to an arm’s length party. The variance in financing amount from the $22 million previously announced by the company is accounted for by the reduced up front fees, the elimination of any debt reserve accounts, and that the short term debt of the company will be repaid as originally scheduled by March of 2010 and not from the financing proceeds. At the San Francisco Project, the ramp up to full production has begun and the brand new $12 million secondary and tertiary crushing system has been tested at loads in excess of the planned processing capacity of 550 metric tonnes per hour. During testing the crushing system was successfully operated at loads in excess of 750 metric tonnes per hour. The increased capacity, if utilized, would result in an increase of capacity from 11,000 metric tonnes per day to 15,000 metric tonnes per day to produce close to 100,000 ounces of gold per year without any additional equipment. The first 8 hectares of heap leach pads have been constructed and a further 7 hectares are almost complete. Crushed ore totaling approximately 70,000 metric tonnes has been placed on the heap leach pads as part of the initial load.

Timmins Gold Corp. said that the company plans to make strategic acquisitions. The company also announced that Sprott Asset Management LP, for and on behalf of certain of the Sprott funds, has agreed to provide $15 million senior secured financing to fund the development of Timmins Gold's wholly-owned San Francisco gold project in Sonora, Mexico. The company said, “Timmins Gold's goal is to utilize future cash flow to expand reserves at the San Francisco gold mine, advance its exploration projects and make strategic acquisitions.”

Timmins Gold Corp. announces that it has completed production testing activities at its San Francisco gold project in Mexico. The San Francisco mine is now initiating ramp up to full production. Working capital for ongoing operations will be funded from the previously announced debt financing which the Company expects to complete shortly. The first gold pour is scheduled by January, 2010. The San Francisco gold project is expected to produce in excess of 80,000 ounces of gold per year, at an average cash cost of $412 an ounce. Management has confirmed excellent potential to expand the reserves at the San Francisco gold project and has identified new drill targets adjacent to the current pit. The San Francisco gold project is a past producing open pit mine and heap leaching operation. All plant and equipment necessary for operations are now in place and tested, including crushing, leaching and extraction facilities designed to produce gold and silver dore. Construction of the brand new $12 million secondary and tertiary crushing system began in November of 2008 under contract with Sandvik and has now been tested at loads in excess of the planned processing capacity of 550 metric tonnes per hour. During testing the crushing system was successfully operated at loads in excess of 750 metric tonnes per hour. The increased capacity, if utilized, would result in an increase of capacity from 11,000 metric tonnes per day to 15,000 metric tonnes per day, over a 30% increase in projected throughput, to produce close to 100,000 ounces of gold per year without any additional equipment. In addition the existing primary crusher was fully refurbished by Metso Minerals and tested. The first 8 hectares of heap leach pads have been constructed and a further 7 hectares are almost complete. Crushed ore totaling approximately 70,000 metric tonnes has been placed on the heap leach pads as part of the initial load. The San Francisco gold project is located in the north central portion of the State of Sonora in Mexico, which borders the US state of Arizona, and is approximately 150 km north of the city of Hermosillo, the capital city of Sonora. The project is located approximately 2 km west of Mexican State Highway 15 (the Pan American Highway). The project is fully permitted and receives electrical power from the local grid.