Goldgroup Mining Inc. (TSX:GGA) announced that it has completed the acquisition of the remaining 30% interest in the Caballo Blanco project held by Almaden Minerals Ltd. (TSX:AMM)
As quoted in the press release:
The aggregate consideration paid by Goldgroup to Almaden in connection with the transaction consisted of: US$2,500,000 in cash; 7,000,000 Goldgroup common shares at closing; the right to receive up to an additional 7,000,000 Goldgroup common shares upon the achievement of certain project milestones (1,000,000 common shares upon commencement of commercial production, 2,000,000 common shares upon measured and indicated resources, including cumulative production, reaching 2,000,000 ounces of gold, 2,000,000 common shares upon measured, indicated and inferred resources, including cumulative production, reaching 5,000,000 ounces of gold and 2,000,000 common shares upon measured, indicated and inferred resources, including cumulative production, reaching 10,000,000 ounces of gold); a 1.5% net smelter return royalty; and the transfer of the Company’s 40% interest in the El Cobre property.
Goldgroup Mining President and CEO, Keith Piggott said:
“The closing of this transaction represents one of Goldgroup’s most significant milestones to date. The Caballo Blanco gold project is Goldgroup’s flagship project and an asset that has the potential to contribute an additional 100,000 ounces of low cost annual gold production to Goldgroup’s growth profile, with initial production scheduled for Q4 2012. The project also has tremendous upside exploration potential which, if realized, could allow production to be expanded from this initial rate. Our Caballo Blanco team has built strong relationships with local stakeholders, including the Government of Veracruz and many local partners. We collectively look forward to fast-tracking the development of the Caballo Blanco gold project.”