Business
Goldgroup Announces $10 Million Loan Facility
VANCOUVER , Sept. 22, 2014 /CNW/ - Goldgroup Mining Inc. ("Goldgroup" or the "Company") (...
About this update from Goldgroup Mining Inc.
[{"type":"text","content":"\n\nVANCOUVER, Sept. 22, 2014 /CNW/ - Goldgroup Mining Inc. (\"Goldgroup\" or the \"Company\") (TSX:GGA, OTC:GGAZF, BMV SIX:GGAN.MX) is pleased to announce that the Company closed an agreement with two lenders (the \"Lenders\"), RMB Resources Inc. (\"RMB\") and Credipresto SAPI de CV SOFOM ENR (\"Credipresto\"), for a USD $10 million secured medium term loan facility (the \"Facility\").  The Facility is being funded 80% by RMB and 20% by Credipresto. Javier Reyes, a director of Goldgroup, is a principal of Credipresto.\n\nThe Facility will be available for drawdown through December 18, 2016, with an initial drawdown being used to repay in full all amounts outstanding on the Company's current loan facility, amounting to CDN $2,189,677.  A second drawdown is intended to occur shortly, subject to the satisfaction of certain market-standard security requirements in Mexico.  The amount of the second drawdown will be the balance of USD $6,000,000 less the amount of the initial drawdown.  The second drawdown will be used for ongoing development work at the Cerro Prieto Project (\"Cerro Prieto\") including for additional crushing equipment and leach pad expansions as well as other working capital purposes. The Facility is secured against certain assets of the Company including Cerro Prieto and the Caballo Blanco Project.\n\nThe outstanding principal amount of the Facility shall accrue interest, in arrears, at an annualized rate of 15% on the portion of the Facility that is drawn down. The portion of the Facility which is not drawn down shall accrue interest, in arrears, at an annualized rate at 2% until December 18, 2016.  The Facility matures on September 18, 2017 and is repayable in the amount of 25% of the outstanding amounts drawn (plus accrued interest) every three months commencing December 18, 2016. The Company will have the option to cancel any amount of the Facility not drawn at any time prior to December 18, 2016 without penalty, and will also have the option to prepay without penalty any outstanding drawn amount at any time subject to ten (10) days' notice, payment of adjustment costs and minimum prepayment amounts of USD $500,000.  A structuring fee equal to 6% of the amount made available under the Facility shall be payable to the Lenders upon the second drawdown of the Facility.  \n\nIn a...