Goldgroup Acquires Majority of Creditors' Rights in San Francisco Mine Restructuring

Goldgroup Mining Inc. has announced the acquisition of 52.7% of creditors' rights in the restructuring of Molimentales del Noroeste, linked to the San Francisco Mine in Sonora, Mexico. This move allows Goldgroup to submit a Plan of Arrangement seeking approval from remaining creditors and a court-appointed liquidator. The acquisition cost Goldgroup approximately US$3.74 million.

This strategic acquisition is a step towards owning the San Francisco Mine, which holds significant potential for future exploration and development. However, the completion of the proposed plan and acquisition is subject to various regulatory and judicial approvals.

The San Francisco Mine has historically been a major gold producer, and gaining control over its assets aligns with Goldgroup's goal of becoming a leading mining entity focused on responsible practices in Mexico. Despite these advancements, there are inherent risks and uncertainties in securing the necessary approvals and successfully restarting operations.