VANCOUVER, Aug. 11, 2016 /CNW/ - Goldgroup Mining Inc.
("Goldgroup" or the "Company") (TSX:GGA, OTC:GGAZF, BMV
SIX:GGAN.MX) would like to provide a corporate update on four
recent developments:
- Cascadia Goldfields Company Ltd. ("Cascadia") paid its second
tranche payment of CAD$425,000 to
Goldgroup
- Warrants exercised - proceeds of CAD $821,720
- Paid off the Credipresto SAPI de CV SOFOM ENR ("Credipresto")
Facility balance
- Oroco Resources Corp. ("Oroco") Promissory Note Amendment
I) Cascadia's second tranche payment
to Goldgroup
Pursuant to the restructuring and sales agreement with Cascadia
(see news release dated May 13,
2016), Cascadia has paid Goldgroup CAD $425,000, which was due on August 1, 2016. Cascadia will be obligated to
make the following payments:
Due
date
|
Payment
|
May 3, 2016
(received)
|
CAD $250,000
cash
|
August 1, 2016
(received)
|
CAD $425,000
cash
|
October 31,
2016
|
CAD $425,000
cash
|
December 30,
2016
|
CAD $400,000
cash
|
December 31,
2017
|
CAD $1,000,000 consists of
CAD $500,000 in
equity of Cascadia; and a
2.5% NSR beginning
on December 31, 2017 with a
capped payment of CAD
$500,000.
|
Total
|
CAD
$2,500,000
|
II) Warrants exercised
Pursuant to the Company's private placement in August 2014 (see news release dated August 12, 2014 and August
22, 2014), the Company is pleased to announce the receipt of
the following cash proceeds received from warrants exercised:
Expiration
date
|
Warrants
outstanding
|
Exercise price
CAD$
|
Warrant
exercised
|
Percentage of
warrant
exercised
|
Proceeds
received by
Goldgroup
CAD$
|
August 11,
2016
|
2,767,955
|
$0.25
|
2,767,955
|
100%
|
$691,988.75
|
August 22,
2016
|
961,056
|
$0.25
|
482,925
|
50%*
|
$120,731.25
|
*The Company expects majority of the warrants remaining will be
exercised, resulting an additional cash proceeds of approximately
CAD $110,000.
III) Credipresto Facility (the
"Facility")
As at the date of this press release, the Company has fully paid
off the Facility's principal and interest. The current balance of
the Facility is $nil.
IV) Oroco Resources Corp. ("Oroco")
Promissory Note Amendment ("Amended Note")
The Company further amends the payment terms of the outstanding
promissory note pursuant to the Cerro
Prieto property sale (see news release dated September 3, 2013 and September 29, 2015).
The following are the newly amended terms:
i)
|
CAD $100,000 paid to Oroco upon execution of the
Amended Note to settle the break fee under the previous promissory
note terms (see September 29, 2015 news
release)
|
ii)
|
US$116,000 paid to Oroco to settle Oroco IVA payable
outstanding upon execution of the Amended Note. The balance of the
Oroco IVA payable would be $nil upon
payment.
|
iii)
|
US$107,500 paid to Oroco towards the outstanding
principal and interest of the Promissory
Note.
|
The Amended Note will have the following payment schedule
("Payment Schedule"):
Date
|
Amount
(US$)
|
September 30,
2016
|
$25,000
|
October 31,
2016
|
$25,000
|
November 7,
2016
|
$200,000
|
December 30,
2016
|
$25,000
|
January 6,
2017
|
$200,000
|
February 28,
2017
|
$25,000
|
March 31,
2017
|
$25,000
|
April 30,
2017
|
$25,000
|
May 31,
2017
|
$25,000
|
June 30,
2017
|
Remainder of
balance
|
If Goldgroup fails to fulfill its obligation under the Payment
Schedule:
i)
|
Goldgroup shall pay Oroco a break fee equal to
US$50,000; and
|
ii)
|
The new payment schedule will be revised to US$75,000
payable at the end of each calendar month;
and
|
iii)
|
The entire remaining principal balance and interest
will be payable on June 30, 2017.
|
As at the date of this news release, the outstanding principal
and interest of the Amended Note was approximately US$798,700.
"Goldgroup has weathered the storm in these volatile times and
successfully extinguished its significant debts and liabilities to
strengthen the balance sheet," said Keith
Piggott, Chairman, President and CEO of Goldgroup,
"Goldgroup would like to use this opportunity to thank our business
partners, loyal shareholders and the Company's employees for their
support in this challenging economic environment. With a stronger
balance sheet and positive cash flow from Cerro Prieto, Goldgroup will continue to
develop and de-risk its assets and look for growth opportunities in
the marketplace."
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.
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, 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.