Goldgroup unveils US$5.00 million sale of Mexico gold/silver project
Goldgroup Mining Inc. [GGA-TSXV, GGAZF-OTC] said it has signed a US$5.00 million deal with an arms-length British Columbia company to sell all of its shares in two subsidiary companies that hold a 100% interest in the Pinos gold/silver project in Zacatecas, Mexico.
“Having received an unsolicited bid for Pinos, management determined that it would be the best use of the company’s resources to dispose of the Pinos asset based on the company’s recent acquisition of the San Francisco gold mine, which is a much larger and more advanced project than Pinos,’’ said Goldgroup CEO Ralph Shearing.
“The company’s focus will be the continued development and optimization of our flagship Cerro Prieto heap-leach gold mine and advancing towards a restart of gold production at the San Francisco gold mine,’’ he said. Both assets are located within 44 kilometres in a straight line from each other in the state of Sonora, Mexico.
Goldgroup shares eased 4.48% or $0.07 to $1.49 on Friday. The shares trade in a 52-week range of $1.56 and 16 cents.
Pinos is a fully permitted PEA-level gold project located in the historic Zacatecas mining belt in north-central Mexico, approximately 67 kilometres northwest of San Luis Potosi. The project consists of 29 concessions covering 3,816 hectares, with extensive gold and silver vein systems. A 2018 PEA defined an initial mineral resource of 86,000 ounces of gold and 1.3 million ounces of silver, and a plan for restarting the operation. The life of mine was estimated at seven years. Initial capital costs were pegged at $13.5 million.
The PEA is based on the Cinco Estrellas vein that is open in all directions with multiple additional vein targets existing on the project, presenting significant resource expansion potential.
Under the terms of a share purchase agreement, Goldgroup has agreed to sell of its shares of subsidiary Minera Apolo Sa de CV to the arms-length purchaser for US$5.0 million in stages, with a US$2.45 million deposit payable on signing, an amount that will be refunded if the sale does not close by February 16, 2026, US$550,000 to be paid on closing and US$2.0 million to be secured by a promissory ote and paid on or before the date that is six months from the closing date. Further, the purchaser has agreed to assume any and all liabilities of Goldgroup associated with Apolo, its Minera Catanava SA de CV (MC) subsidiary and the Pinos project, including the assumption of US$400,000 remaining payable on the original purchase agreement in addition to debt in the amount of US$1.5 million, payable to the previous owners of Apolo that will be triggered by the sale of Apolo.
Goldgroup, the purchaser and the previous owners of Apolo acknowledge and agree that they will have no further recourse against Goldgroup for any liabilities related to Apolo, MC and the Pinos, all of which have been assumed by the purchaser.