Business
Goldgroup Announces Proposed Settlement of Loan
Vancouver, British Columbia--(Newsfile Corp. - June 15, 2023) - Goldgroup Mining Inc. (TSX: GGA) ...
About this update from Goldgroup Mining Inc.
[{"type":"text","content":"Goldgroup Announces Proposed Settlement of LoanVancouver, British Columbia--(Newsfile Corp. - June 15, 2023) - Goldgroup Mining Inc. (TSX: GGA) (OTC Pink: GGAZF) (BMV SIX: GGAN.MX) (\"Goldgroup\" or the \"Company\") hereby announces that the Company will be seeking minority shareholder approval at the Company's Annual General and Special Meeting (the \"Shareholders Meeting\") to be held on June 28, 2023 in connection with the settlement of a loan obtained from Accendo Banco S.A., Multiple Banking Institution (\"Accendo\") in 2020.Background to the SettlementOn June 29, 2020, the Company's subsidiary, Minas de Oroco Resources, S.A. de C.V. (\"Minas de Oroco\"), completed a definitive loan facility agreement with Accendo in the amount of US$3,000,000 at a rate of 12% per annum with a final repayment date of 36 months from the date of the first disbursement (the \"Accendo Loan\"). The Company guaranteed the Accendo Loan on behalf of Minas de Oroco. The amount currently outstanding under the Accendo Loan is approximately US$1,850,000.The debt underlying the Accendo Loan has been acquired by Minera Cerro Esperanza S.A de C.V. (\"MER\"), a wholly owned subsidiary of Calu Opportunity Fund LP (\"Calu\"). Calu is a shareholder and investor in the Company having acquired 1,177,500 Common Shares and having loaned the Company US$2.16 million (the \"Calu Loan\"). The Company will be seeking shareholder approval for the conversion of the Calu Loan into Common Shares of the Company at the Shareholders Meeting, which approval shall exclude any votes cast by Calu.MER contacted the Company on April 26, 2023 seeking repayment of the Accendo Loan. As the assets of Minas de Oroco are currently the only operating assets of the Company, the seizure of these assets would effectively place the Company into insolvency unless another arrangement was made. Further to discussions with MER, the Company is proposing to enter into a Settlement Agreement and an Exploitation and Option to Purchase Agreement, subject to approval of minority shareholders at the Meeting, pursuant to which the Company will deliver the assets of Minas de Oroco to MER in full satisfaction of the Accendo Loan and the Company is provided the right to operate the assets of Minas de Oroco and to purchase the assets in the future.Shareholder Approval of the Transaction As Calu and its affi...