Timmins Gold to raise C$25 mln selling shares to bank syndicate

TORONTO, Jan 22 (Reuters) - Timmins Gold Corp , which owns the San Francisco gold mine in Mexico, said on Wednesday it had agreed to sell C$25 million worth of equity to a syndicate of banks as it seeks to strengthen its balance sheet.

The syndicate led by RBC Capital Markets will buy the shares at a price of C$1.50 per common share, a 13.3 percent discount to Timmins' closing price of C$1.73 on the Toronto Stock Exchange on Tuesday. The transaction was done as a bought deal.

A bought deal occurs when an underwriter, or a syndicate, buy shares from an issuer before selling them to the public. The deals typically occur at a slight discount to a company's last trading price.

The company said proceeds will be used for general corporate purposes, including repayment of debt and working capital needs.

(Reporting by Euan Rocha; Editing by Jeffrey Benkoe)

((euan.rocha@thomsonreuters.com)(+1 416 941 8185)(Reuters Messaging: euan.rocha.reuters.com@reuters.net))

Keywords: TIMMINSGOLD OFFERING/