Business
Goldgroup and Oroco Agree to Extension of the Closing Date for the Cerro Prieto Acquisition
VANCOUVER , July 16, 2013 /CNW/ - Goldgroup Mining Inc. ("Goldgroup" or the "Company") (...
About this update from Goldgroup Mining Inc.
[{"type":"text","content":"\n\n\nVANCOUVER, July 16, 2013 /CNW/ - Goldgroup Mining Inc. (\"Goldgroup\" or\n the \"Company\") (TSX:GGA, OTC:GGAZF, BMV SIX:GGAN.MX) announced today\n that they have extended the closing of the acquisition of the Cerro\n Prieto Project (the \"Cerro Prieto Project\") from Oroco Resource Corp.\n (\"Oroco\") to August 15, 2013.\n\n\nGoldgroup has agreed to reimburse Oroco for all interim fees, expenses\n and liabilities incurred from June 28, 2013 by Minas de Oroco S.A. de\n C.V., a wholly-owned subsidiary of Oroco and the holder of the Cerro\n Prieto Project, and all interest charges accruing from June 28, 2013 in\n regards to the Oroco debentures issued by Oroco on May 21, 2012. \n Goldgroup has also paid to Oroco a US$100,000 deposit against the\n initial payment of US$4,500,000 due by Goldgroup to Oroco upon closing\n of the sale of the Cerro Prieto Project.  Goldgroup and Oroco remain\n committed to the Cerro Prieto deal and look forward to closing the\n transaction in a timely manner.\n\n\nGoldgroup is also pleased to announce that it signed a term sheet for\n CDN$4 million of senior secured loan facility (the \"Loan Facility\").\n The closing of the Loan Facility is subject to certain conditions,\n including but not limited to the satisfactory completion of due\n diligence by the lenders. The parties intend to close the Loan Facility\n on or about August 9, 2013. The proceeds from the Loan Facility will be\n applied to the closing of the Oroco transaction. Under the Loan\n Facility, Goldgroup will pay 15% interest annually, with nine equal\n principal and interest repayment installments, commencing April 30,\n 2014 and ending December 31, 2014. The Loan Facility can be repaid at\n any time without prepayment penalty. The Loan Facility will be secured\n by a first priority lien on all assets of the Company.\n\n\nAbout Goldgroup\n\n\nGoldgroup is a Canadian-based gold production, development, and\n exploration Company with significant upside in a portfolio of projects\n in Mexico, including its flagship 100%-owned advanced stage gold\n development project Caballo Blanco in the state of Veracruz, and a 50%\n interest in DynaResource de Mexico, S.A. de C.V., which owns 100% of\n the high-grade gold exploration project, San José de Gracia located in\n the state of Sinaloa. The Company also operates its 100%-owne...