Goldgroup Mining amends Oroco transaction terms, closes deal
TORONTO (miningweekly.com) – Toronto-listed Goldgroup Mining on Tuesday said it had changed some of the terms of its acquisition of TSX-V-listed Oroco Resource Corporation, as a result of a deterioration in the gold price since the transaction was first announced in January.
In a statement on Tuesday, Vancouver-based Goldgroup said it had closed the $18-million transaction by paying an initial $4.5-million for the Cerro Prieto gold/silver/lead/zinc project, in Sonora state, Mexico.
However, both companies had agreed to an amended and restated debt assignment and share purchase agreement, which included a quarterly production royalty payment to Oroco.
Mexico-focused Goldgroup said it intended to start small-scale trial mining and leaching in the fourth quarter, to determine the ideal parameters to put the project into production in 2014. This would be done without completing a preliminary economic assessment.
The Cerro Prieto project encompasses mineral concessions totalling about 7 000 ha and contains about 17.5 km of strike length of the mineralised structure hosting the current resource.
“As we begin slowly winding down mining operations at Cerro Colorado, we are successfully transitioning equipment and personnel from there to the Cerro Prieto project. Furthermore, with the project finance in place, we are able to move the Cerro Prieto project closer to gold production, which we anticipate over the next twelve months,” Goldgroup president, chairperson and CEO Keith Piggott said.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Rio Carb is an OEM (Original Equipment Manufacturer) of R-C700 Chromium Carbide (CrC) alloy clad wear plates and pipes used for heavy materials...
VISIT SHOWROOM
Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
