Goldgroup Mining Closes $7 Million First Tranche of Private Placement
Vancouver, British Columbia -- March 17, 2025 -- NewsGenie -- Goldgroup Mining Inc. (TSX-V:GGA, OTC:GGAZF) has successfully closed the first tranche of its non-brokered private placement, raising approximately CAD $7 million. This tranche involved the issuance of 23,333,334 units at CAD $0.30 per unit.
Each unit comprises one common share and one-half of a common share purchase warrant. A full warrant allows the holder to purchase one common share at $0.45 until March 17, 2027. Eric Sprott, through 2176423 Ontario Ltd., acquired 22,500,000 units for $6,750,000, resulting in holdings of approximately 12.5% of the company's outstanding common shares and 17.6% on a partially diluted basis.
The net proceeds from the private placement will be allocated to Cerro Prieto mine improvements, an update to the Pinos Project preliminary economic assessment, debt reduction, and general working capital. The securities issued are subject to a four-month hold period expiring on July 18, 2025. The TSX Venture Exchange must still approve the closing.
In connection with the placement, the Company issued 900,000 finder’s units. Each Finder’s Unit consists of one Common Share and one-half common share purchase warrant, with each full warrant being exercisable to purchase one Common Share at a price of $0.45 until March 17, 2027.
Goldgroup Mining is a Canadian company operating the Cerro Prieto gold mine in Mexico.