TORONTO (miningweekly.com) – Project developer Goldgroup Mining has issued 16.5-million common shares to Oroco Resource Corp regarding it 2013 acquisition of the Cerro Prieto project, in Mexico.
As part of the purchase agreement, Goldgroup committed to issue the shares or, at its option, pay $4.13-million to Oroco by August 30. The company had chosen to issue the common shares as opposed to cash settlement.
Goldgroup also had two other promissory notes issued by Oroco, with the principal of $250 000 (due on demand) and $750 000 (due on September 15).
Oroco had now demanded payment on the $250 000 promissory note, with negotiations currently under way to find a final resolution.
Both promissory notes, which were issued in June after the company renegotiated the $1-million balance of an original $1.5-million promissory note, bore an 8% yearly interest rate, payable monthly in arrears.