VANCOUVER, Aug. 30, 2017 /CNW/ - Goldgroup Mining Inc. ("Goldgroup" or the "Company") (TSX:GGA, OTC:GGAZF, BMV SIX:GGAN.MX) announces it has amended the terms of its outstanding loan facility from Credipresto SAPI de CV SOFOM ENR ("Credipresto"), subject to TSX approval. Javier Reyes, a director of Goldgroup, is an executive officer and director of Credipresto.
The Company entered into a US$10 million syndicated facility agreement as announced on September 19, 2014 among Credipresto, Goldgroup and another party that has since assigned its position to Credipresto, and guaranteed by the various guarantor parties thereto, as amended by the Loan Assignment Agreement announced in the press release on December 2, 2015. The facility agreement ("Credit Agreement") was further amended as announced on December 23, 2015. Prior to the amendments to the Credit Agreement described herein, the outstanding balance owed on the Credit Agreement was US$89,000. In addition to the Credit Agreement, Credipresto has loaned the Company funds which bear interest at a rate of 12% per annum and are subject to the same repayment terms as the Credit Agreement (the "Additional Loan"). Prior to the amendments to the Credit Agreement described herein, the outstanding balance owed on the Additional Loan was US$538,000.
Facility amended terms
- The Additional Loan was merged into the Credit Agreement such that it ceases to be a separate debt obligation owing by Goldgroup to Credipresto and such that the aggregate outstanding balance owing on the Credit Agreement is now US$627,000 (the "Amended Balance"), not including the additional draw described below, all of which is subject to the full terms and conditions of the Credit Agreement as amended (including, for clarity, that the interest rate of 15% per annum now applies to all of the Amended Balance);
- The maturity date and all required repayment dates of the Credit Agreement were extended by one year, such that required quarterly payments now commence December 18, 2018 (rather than December 18, 2017) and final payment is now due on September 18, 2019 (rather than September 18, 2018); and
- The available credit under the Credit Agreement (in addition to the Amended Balance) was set at US$1,500,000, of which US$1,000,000 is intended to be drawn shortly.
- As consideration for Credipresto agreeing to amend and extend the Credit Agreement, the Company has issued 3,5000,000 warrants to Credipreseto, each warrant exchangeable for one common share in the capital of the Company at an exercise price of $0.10. The warrants will expire if not exercised within two years.
About Goldgroup
Goldgroup is a Canadian-based gold production, development, and exploration company with a significant upside in a portfolio of projects in Mexico and Ecuador, including a 50% interest in DynaResource de Mexico, S.A. de C.V., which owns 100% of the high-grade gold exploration project, San José de Gracia located in the State of Sinaloa. The Company operates its 100%-owned Cerro Prieto heap-leach gold mine, in the State of Sonora, Mexico, and is continuing the environmental assessment and permitting processes to advance to production the El Mozo property in Ecuador.
Goldgroup is led by a team of highly successful and seasoned individuals with extensive expertise in mine development, corporate finance, and exploration in Mexico and Ecuador. Goldgroup's mission is to increase gold production, mineral resources, profitability and cash flow, with a view to building a leading gold producer.
