Dec 26 2014
Goldgroup Mining Inc. is pleased to announce that it has completed the sale of the Caballo Blanco project located in Veracruz, Mexico to Timmins Gold Corp.
Total cash consideration paid at closing by Timmins Gold was US$10 million and 16,065,000 Timmins Gold shares. Additionally, Goldgroup is entitled to an additional contingent amount of US$5 million that will become payable in cash, Timmins Gold shares, or a combination thereof (at the option of Timmins Gold, provided that Goldgroup's ownership in Timmins Gold will not exceed 9.9% at any time) should any of the following events occur prior to October 31, 2019:
- The approval of the Project's Environmental Impact Statement from SEMARNAT
- A change in beneficial ownership of Timmins Gold of greater than 50%; or
- The removal or change, at one time, of a majority of the current members of the Timmins Gold Board of Directors
As previously disclosed, the Company will be restricted from trading the Timmins Gold shares obtained in the transaction until the expiration of the standard statutory hold period, and 6,426,200 of the shares are being held in escrow to be released upon the earlier to occur of the completion of certain post-Closing actions or the expiration of the standard statutory hold period.