Goldgroup Announces Agreement to Sell Minera Apolo, Divesting Pinos Project

Goldgroup Mining to Sell Minera Apolo

Goldgroup Mining Inc. has entered into a definitive agreement to sell its subsidiary Minera Apolo, S.A. de C.V., which holds ownership of the Pinos gold/silver project in Mexico. This transaction, valued at US$5 million, remains contingent upon the approval of the TSX Venture Exchange.

Details of the Sale

Under the terms of the agreement, Goldgroup will sell all outstanding shares of Minera Apolo to a private company based in British Columbia. Payment will be structured in stages, including an initial deposit of $2.45 million upon signing, with further payments due at closing and within six months thereafter. The purchaser will assume all liabilities associated with the Pinos project, freeing Goldgroup from any future financial obligations related to this asset.

Strategic Shift Towards Larger Projects

The decision to divest the Pinos asset stems from an unsolicited offer that prompted Goldgroup to reassess its strategic focus. Ralph Shearing, CEO of Goldgroup, indicated that the company intends to prioritize its more advanced gold assets such as the San Francisco gold mine, which is closer to re-commencing production and is considered pivotal for future growth.

Future Focus and Development Plans

The proceeds from this sale are expected to be redirected towards optimizing Goldgroup’s flagship Cerro Prieto heap-leach gold mine and preparing for the resumption of operations at the San Francisco mine. This strategic allocation of resources aligns with Goldgroup's long-term development objectives, concentrating on projects that promise higher returns.

Key Takeaways

Goldgroup Mining has agreed to sell Minera Apolo, which owns the Pinos project, for US$5 million.

The transaction is subject to approval from the TSX Venture Exchange.

The proceeds will be used to focus on larger initiatives such as the Cerro Prieto and San Francisco gold mines.

The purchaser will assume all liabilities related to the Pinos project, relieving Goldgroup of associated risks.

This sale signals a strategic move to enhance shareholder value by monetizing non-core assets.