VANCOUVER, Feb. 12, 2016 /CNW/ - Goldgroup Mining Inc.
("Goldgroup" or the "Company") (TSX:GGA, OTC:GGAZF,
BMV SIX:GGAN.MX) announces it has issued 4,691,000 common shares
(the "Shares") at a deemed price of $0.06 per Share to satisfy debt owing to Oroco
Resource Corp. ("Oroco") in the amount of US$200,000 (being the equivalent of Cdn$281,460 calculated using the Bank of Canada
Noon Exchange Rate on January 28,
2016 of US$1.00: Cdn$1.4073 (the "Transaction").
Of the US$200,000 debt satisfied,
US$145,000 is allocated to the
balance outstanding on two promissory notes, each dated
May 31, 2015 (the "Promissory
Notes"), issued pursuant to a payment agreement between the
Company and Oroco made effective as of May
31, 2015 (and as described in the press release issued by
the Company on September 29,
2015). US$55,000 is related to
the Mexican Value Added Tax (the "VAT Payable") owed to
Oroco pursuant to an Assignment of Debt Agreement between the
Company and Oroco made effective as of September 19, 2014 (and as described in the press
release issued by the Company on September
22, 2014).
Following the completion of the Transaction, the Company owes
Oroco approximately US$116,000 in
respect of the VAT Payable (due on demand). The principal
balance outstanding on the Promissory Notes is US$805,000 (of which US$255,000 is due on demand). The Company
also accrued approximately US$55,000
of interest (due on demand) related to the Promissory Notes.
The remainder of the payment terms of the Promissory Notes are the
same as those described in the press release issued by the Company
on September 29, 2015.
The Company continues to negotiate the terms of the Promissory
Notes with Oroco due to the current market condition.
About Goldgroup
Goldgroup is a Canadian-based gold production, development, and
exploration Company with a significant upside in a portfolio of
projects in Mexico, 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 also operates
its 100%-owned Cerro Prieto
heap-leach gold mine, in the State of
Sonora.
Goldgroup is led by a team of highly successful and seasoned
individuals with extensive expertise in mine development, corporate
finance, and exploration in Mexico. Goldgroup's mission is to increase
gold production, mineral resources, profitability and cash flow,
with a view to building a leading gold producer in Mexico.
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, 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. 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.