Candelaria settles contingent payment to Goldgroup
Candelaria Mining Corp (C:CXX)
Monday November 14 2016 - News Release
Also Goldgroup Mining Inc (C:GGA) News Release
Mr. Sokhie Puar of Candelaria reports
CANDELARIA MINING SETTLES CONTINGENT PAYMENT UNDER CABALLO BLANCO PURCHASE AGREEMENT, ANNOUNCES SHARE CONSOLIDATION
Candelaria Mining Corp. has settled a $5-million (U.S.) contingent payment to Goldgroup Mining Inc. in exchange for up to $3.1-million (U.S.) in payments. The contingent payment was part of the terms of the purchase agreement for the Caballo Blanco Gold Project entered into between the Company and Molimentales Del Noroeste, SA de CV, a subsidiary of Timmins Gold Corp. The Company was required to make a US$5 million payment to Goldgroup upon receipt of approval of the Caballo Blanco project's environmental impact statement from SEMARNAT. Pursuant to the settlement the Company has paid US$2,500,000, with an additional US$600,000 to be paid upon SEMARNAT approval.
Credipresto negotiated the settlement with Goldgroup and retains US$600,000 of the settlement amount. Javier Reyes is a shareholder of Credipresto and a director of the Company. The role of Credipresto in negotiating the settlement and related compensation for that role constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101") and TSXV Policy 5.9 Protection of Minority Security Holders in Special Transactions. The Company is relying on the exemptions from the formal valuation and minority approval requirements contained in Sections 5.5(a) and 5..7(1)(a) of MI 61-101, on the basis that the fair market value of the transaction does not exceed 25% of the Company's market capitalization.
The Company further announces that it proposes to consolidate its issued and outstanding common shares on the basis of every three (3) pre-consolidation common shares into one (1) post-consolidation common share (the "Consolidation"). The Company currently has 243,954,415 common shares issued and outstanding. Upon the Consolidation becoming effective, the Company will have approximately 81,318,138 common shares issued and outstanding on a non-diluted basis, prior to rounding down for fractional shares. The Company's outstanding incentive stock options and warrants will be adjusted on the same ratio (3:1) in accordance with their respective terms, with proportionate adjustments being made to exercise prices.
The Consolidation is subject to regulatory approval, including the approval of the TSX Venture Exchange.
|You are currently subscribed to investor1 as: .com|
Add firstname.lastname@example.org to your email address book to ensure delivery.
| | | | | Snooze|
CODE : GGA.TO
ISIN : CA38141A1075
Projects & res.Press
Asset profileContact Cpy
Goldgroup is a producing gold company based in Canada.
Goldgroup holds various exploration projects in Mexico.
Its main asset in production is CERRO COLORADO in Mexico and its main exploration properties are SAN JOSE DE GARCIA, EL PORVENIR, EL CANDELERO and CABALLO BLANCO in Mexico.
Goldgroup is listed in Canada. Its market capitalisation is CA$ 19.4 millions as of today (US$ 14.9 millions, € 14.1 millions).
Its stock quote reached its highest recent level on September 16, 2011 at CA$ 1.75, and its lowest recent point on November 29, 2013 at CA$ 0.04.
Goldgroup has 185 140 000 shares outstanding.