Goldgroup acquires some creditor rights in Molimentales

Executive Summary

• Goldgroup Mining Inc. acquired approximately 52.7% of the creditor rights in Molimentales del Noroeste SA de CV’s concurso mercantil restructuring for an estimated US$3.74 million.
• The acquisition positions Goldgroup to file a plan of arrangement aimed at obtaining ownership of the San Francisco mine and related assets, subject to court and liquidator approvals.
• Completion of the transaction requires TSX Venture Exchange approval and successful resolution of regulatory, tax, and labor obligations in Mexico.

Key Details

• Acquisition Scope: ~52.7% of creditor rights in Molimentales del Noroeste SA de CV (the “Debtor”).
• Purchase Price: Approximately US$3.74 million, covering direct payments to creditors and transaction‑related expenses.
• Primary Asset: San Francisco mine concessions in Sonora, Mexico—including mining concessions, processing plant, and infrastructure.
• Strategic Intent: File a plan of arrangement with the Mexican court‑appointed liquidator to obtain full ownership of the San Francisco mine upon approval by remaining creditors and the liquidator.
• Future Costs: Goldgroup expects additional expenditures to acquire further creditor rights and to satisfy outstanding liabilities (government fees, taxes, labor costs).
• Regulatory Conditions: Subject to approval by the TSX Venture Exchange, Mexican court jurisdiction over the concurso mercantil, and liquidation trustee consent.
• Risks Disclosed: No guarantee of plan of arrangement approval; potential regulatory, tax, labor, and operational challenges could impede acquisition or restart of mining operations.

Notable Quotes

“This acquisition represents Goldgroup's first steps towards acquiring the San Francisco mine and its associated assets,” said Ralph Shearing, Chief Executive Officer of Goldgroup Mining.
“With majority creditor rights, we now have the legal foundation to move forward and submit a plan of arrangement…Goldgroup hopes to acquire Molimentales.”