Goldgroup Mining closes $122 million private placement

Vancouver, Canada - Goldgroup Mining Inc. successfully completed a non-brokered private placement on Friday, issuing 33.3 million units at $3.65 each, raising a total of $121.8 million in gross proceeds. The company surpassed its initial target of $75 million by over 60%. Each unit comprises one common share and a half-share purchase warrant, with the latter allowing the holder to acquire one common share at a $5.10 exercise price until March 2028.

Goldgroup plans to utilize the net proceeds for working capital, general corporate expenses, advancing its existing mining and development portfolio, and exploring strategic investment and M&A opportunities within the mining sector. The funding marks the company's largest financing to date, as stated by Chairman and CEO Javier Reyes, who credits strong support from new and existing shareholders.

The firm paid eligible finders $4.22 million in aggregate cash commissions, equivalent to 5% of the gross proceeds raised. Goldgroup owns four assets: the Don David Gold Mine and Cerro Prieto Gold Mine in Mexico, the San Francisco Gold Project in Sonora, and the Back Forty Project in Michigan. The securities issued under this offering are not registered under the 1933 US Securities Act and are subject to a four-month and one-day statutory hold period under Canadian securities laws following the closing.

The company received conditional approval from the TSX Venture Exchange to finalize the offering, contingent on the completion of remaining filing requirements.