Business
Goldgroup Announces Closing of Acquisition of Cerro Prieto Project and Provides Corporate Update
VANCOUVER , Sept. 3, 2013 /CNW/ - Goldgroup Mining Inc. ("Goldgroup" or the "Company") (...
About this update from Goldgroup Mining Inc.
[{"type":"text","content":"\n\n\nVANCOUVER, Sept. 3, 2013 /CNW/ - Goldgroup Mining Inc. (\"Goldgroup\" or\n the \"Company\") (TSX:GGA, OTC:GGAZF, BMV SIX:GGAN.MX) is pleased to\n announce the closing of the acquisition (the \"Transaction\") of a 100%\n interest in the Cerro Prieto Project (the \"Project\") from Oroco\n Resource Corp. (\"Oroco\"), previously announced January 28, 2013.\n\n\nDue to the current market conditions and the deterioration of the gold\n price since January 2013, Goldgroup and Oroco have agreed to\n restructure the terms of the Transaction.  The original terms of the\n Transaction can be found in Goldgroup's news release dated January 28,\n 2013.\n\n\nTransaction Details:\n\n\nOn closing of the Transaction, the Company paid Oroco US$4.5 million. \n The Company also issued to Oroco a promissory note in the principal\n amount of US$1.5 million (the \"First Loan\"), with the principal amount\n of the First Loan bearing simple interest at a rate of 8% per annum and\n repayable in six equal monthly instalments of US$250,000 each,\n commencing on the later of January 31, 2015 and the first day of the\n month following the date the Project achieves commercial production. \n Interest will accrue on the principal amount of the First Loan from the\n date of closing of the Transaction and will be payable quarterly in\n arrears, on a declining balance, however, the Company's obligation to\n deliver such quarterly interest payments will be suspended until the\n Project achieves commercial production.\n\n\nAs additional consideration, upon closing of the Transaction, the\n Company issued to Oroco 5,500,000 common shares.  The Company also\n issued to Oroco a promissory note in the principal amount of US$4.125\n million (the \"Second Loan\"), with the principal amount of the Second\n Loan bearing no interest and repayable on the second anniversary of the\n closing of the Transaction.  The Company may elect at its sole\n discretion to repay the principal amount of the Second Loan in cash or\n by issuing to Oroco 16,500,000 common shares.\n\n\nAdditionally, the Company will pay Oroco a production royalty of up to a\n maximum of US$90 per ounce of gold produced from the Project, for the\n greater of (i) the first 90,000 ounces of gold produced from the\n Project and (ii) all ounces of gold produced from the Project until the...