Goldgroup Mining has concluded the sale of its Caballo Blanco project in Veracruz, Mexico to Timmins Gold.

The company received $10m in cash and 16,065,000 Timmins Gold shares.

Goldgroup Mining is entitled to receive $5m if Caballo Blanco receives approval for its environmental impact statement or Timmins Gold undergoes a change of control.

Timmins Gold CEO Bruce Bragagnolo said: "The acquisition of Caballo Blanco accomplishes our strategic goal of adding a highly prospective gold mining project at an attractive valuation in Mexico, a very familiar, well-established and low-risk mining jurisdiction.

"We believe Caballo Blanco is an extremely promising project, even at current gold prices, and we look forward to optimizing the current PEA mine plan while continuing to execute our growth objectives."

The additional payment to Goldgroup will be paid at Timmins Gold’s option in cash or Timmins Gold shares.