VANCOUVER, Aug. 30, 2017 /CNW/ - Goldgroup Mining Inc.
("Goldgroup" or the "Company") (TSX:GGA, OTC:GGAZF, BMV
SIX:GGAN.MX) announces it has amended the terms of its outstanding
loan facility from Credipresto SAPI de CV SOFOM ENR
("Credipresto"), subject to TSX approval. Javier Reyes, a director of Goldgroup, is an
executive officer and director of Credipresto.
The Company entered into a US$10
million syndicated facility agreement as announced on
September 19, 2014 among Credipresto,
Goldgroup and another party that has since assigned its position to
Credipresto, and guaranteed by the various guarantor parties
thereto, as amended by the Loan Assignment Agreement announced in
the press release on December 2,
2015. The facility agreement ("Credit Agreement") was
further amended as announced on December 23,
2015. Prior to the amendments to the Credit Agreement
described herein, the outstanding balance owed on the Credit
Agreement was US$89,000. In
addition to the Credit Agreement, Credipresto has loaned the
Company funds which bear interest at a rate of 12% per annum and
are subject to the same repayment terms as the Credit Agreement
(the "Additional Loan"). Prior to the amendments to the
Credit Agreement described herein, the outstanding balance owed on
the Additional Loan was US$538,000.
Facility amended terms
- The Additional Loan was merged into the Credit Agreement such
that it ceases to be a separate debt obligation owing by Goldgroup
to Credipresto and such that the aggregate outstanding balance
owing on the Credit Agreement is now US$627,000 (the "Amended Balance"), not including
the additional draw described below, all of which is subject to the
full terms and conditions of the Credit Agreement as amended
(including, for clarity, that the interest rate of 15% per annum
now applies to all of the Amended Balance);
- The maturity date and all required repayment dates of the
Credit Agreement were extended by one year, such that required
quarterly payments now commence December 18,
2018 (rather than December 18,
2017) and final payment is now due on September 18, 2019 (rather than September 18, 2018); and
- The available credit under the Credit Agreement (in addition to
the Amended Balance) was set at US$1,500,000, of which US$1,000,000 is intended to be drawn shortly.
- As consideration for Credipresto agreeing to amend and extend
the Credit Agreement, the Company has issued 3,5000,000 warrants to
Credipreseto, each warrant exchangeable for one common share in the
capital of the Company at an exercise price of $0.10. The warrants will expire if not exercised
within two years.
About Goldgroup
Goldgroup is a Canadian-based gold production, development, and
exploration company with a significant upside in a portfolio of
projects in Mexico and
Ecuador, including a 50% interest
in DynaResource de Mexico, S.A. de
C.V., which owns 100% of the high-grade gold exploration project,
San José de Gracia located in the
State of Sinaloa. The Company
operates its 100%-owned Cerro
Prieto heap-leach gold mine, in the State of Sonora, Mexico, and is continuing the
environmental assessment and permitting processes to advance to
production the El Mozo property in Ecuador.
Goldgroup is led by a team of highly successful and seasoned
individuals with extensive expertise in mine development, corporate
finance, and exploration in Mexico
and Ecuador. Goldgroup's mission
is to increase gold production, mineral resources, profitability
and cash flow, with a view to building a leading gold producer.
For further information on Goldgroup, please
visit www.goldgroupmining.com
On behalf of the Board of Directors,
Mr. Keith
Piggott, Chairman and President
Tel:
1-520-247-5753
Investor Relations
Toll Free:
1-877-655-ozAu (6928)
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
INFORMATION
Certain information contained in this news release, including
any information relating to future financial or operating
performance (including future production and cost
estimates), may be considered "forward-looking information"
(within the meaning of applicable Canadian securities law) and
"forward-looking statements" (within the meaning of the United
States Private Securities Litigation Reform Act of 1995). These
statements relate to analyses and other information that are based
on forecasts of future results, estimates of amounts not yet
determinable and assumptions of management. Actual results could
differ materially from the conclusions, forecasts and projections
contained in such forward-looking information. These
forward-looking statements reflect Goldgroup's current internal
projections, expectations or beliefs and are based on information
currently available to Goldgroup. In some cases forward-looking
information can be identified by terminology such as "may", "will",
"should", "expect", "intend", "plan", "anticipate", "believe",
"estimate", "projects", "potential", "scheduled", "forecast",
"budget" or the negative of those terms or other comparable
terminology. Certain assumptions may have been made regarding the
Company's plans at the Cerro
Prieto project. Many of these assumptions are based on
factors and events that are not within the control of Goldgroup and
there is no assurance they will prove to be correct.
Forward-looking information is subject to a variety of known and
unknown risks, uncertainties and other factors that could cause
actual events or results to materially differ from those reflected
in the forward-looking information, and are developed based on
assumptions about such risks, uncertainties and other factors
including, without limitation: uncertainties related to actual
capital costs, operating costs and expenditures, production
schedules and economic returns from Goldgroup's projects;
uncertainties associated with development activities; uncertainties
inherent in the estimation of mineral resources and precious metal
recoveries; uncertainties related to current global economic
conditions; fluctuations in precious and base metal prices;
uncertainties related to the availability of future financing;
potential difficulties with joint venture partners; risks that
Goldgroup's title to its property could be challenged; political
and country risk; risks associated with Goldgroup being subject to
government regulation; risks associated with surface rights;
environmental risks; Goldgroup's need to attract and retain
qualified personnel; risks associated with potential conflicts of
interest; Goldgroup's lack of experience in overseeing the
construction of a mining project; risks related to the integration
of businesses and assets acquired by Goldgroup; uncertainties
related to the competitiveness of the mining industry; risk
associated with theft; risk of water shortages and risks associated
with competition for water; uninsured risks and inadequate
insurance coverage; risks associated with potential legal
proceedings; risks associated with community relations; outside
contractor risks; risks related to archaeological sites; foreign
currency risks; risks associated with security and human rights;
and risks related to the need for reclamation activities on
Goldgroup's properties, as well as the risk factors disclosed in
Goldgroup's Annual Information Form and MD&A. Any and all of
the forward-looking information contained in this news release is
qualified by these cautionary statements. Although Goldgroup
believes that the forward-looking information contained in this
news release is based on reasonable assumptions, readers cannot be
assured that actual results will be consistent with such
statements. Accordingly, readers are cautioned against placing
undue reliance on forward-looking information. Goldgroup expressly
disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new
information, events or otherwise, except as may be required by, and
in accordance with, applicable securities laws.
SOURCE Goldgroup Mining Inc.