Goldgroup satisfies debt through shares

16th February 2016 By: Megan van Wyngaardt - Creamer Media Contributing Editor Online

JOHANNESBURG (miningweekly.com) – TSX-listed Goldgroup Mining has issued 4.69-million common shares at $0.06 apiece to satisfy the $200 000 debt it owes to mineral exploration company Oroco Resource Corp.

Of the debt satisfied, $145 000 was allocated to the balance outstanding on two promissory notes – each dated May 31, 2015 – issued in accordance with a payment agreement between the two companies; $55 000 related to the Mexican value added tax (VAT) also owed to Oroco.

Following the completion of the transaction, Goldgroup would owe Oroco $116 000 in respect of the VAT payable.

The principal balance outstanding on the promissory notes was $805 000.