The sale, which is subject to closing adjustments, will allow the company to focus on its core business of gold exploration, development and production.
Timberline president and CEO Paul Dircksen said that with gold prices exceeding $1,800 per ounce, the company believes that the economic potential of its core business is extremely compelling.
"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," Dircksen said.
The sale, which is expected to close on or before 15 November 2011, is contingent upon execution of a definitive sale agreement with reasonable, customary and mutually-agreeable conditions and successful due diligence, the company said.
Timberline is engaged in the exploration and development of advanced-stage gold properties in the western US.
