VANCOUVER, May 7 /CNW/ - Goldgroup Mining Inc. ("Goldgroup") is pleased to announce that the Toronto Stock Exchange ("TSX") has given final approval to the business combination (the "Transaction") between Goldgroup, formerly known as Sierra Minerals Inc. (TSX:SIM), and Goldgroup Resources Inc. ("Old Goldgroup"). As previously announced, the Transaction was completed on April 30, 2010. The common shares of Goldgroup, formerly known as Sierra Minerals Inc., which were consolidated on a 2.85 (old) for 1 (new) basis, will commence trading at the open of the market today on the TSX under the new symbol "GGA". On an adjusted basis, the May 6 closing price of SIM of $0.37 equates to $1.05 in terms of GGA. A total of 51,942,637 post-consolidation common shares of Goldgroup were issued to Old Goldgroup shareholders as part of the Transaction such that there are now 84,952,432 post-consolidation common shares of Goldgroup outstanding giving a market capitalization of approximately $89.2 million based on May 6th's closing price.
About Goldgroup Mining Inc.
Goldgroup is a Canadian based gold production and exploration company focused on Mexico. Goldgroup owns and operates the Cerro Colorado Gold Mine in Sonora, Mexico. All gold production is un-hedged and Goldgroup expects to produce approximately 25,000 to 30,000 ounces of gold in 2010. Goldgroup's portfolio of exploration and development properties includes its 70% owned flagship project, Caballo Blanco in Veracruz, along with its 50% earnable interest in the San José de Gracia high-grade underground project in Sinaloa and the 100% owned El Porvenir project in Aguascalientes.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain information contained in this news release, including any information relating to future financial or operating performance may be deemed "forward-looking". All statements in this news release, other than statements of historical fact, that address events or developments that Goldgroup expects to occur, are "forward-looking information". These statements relate to future events or future performance and reflect Goldgroup's expectations regarding the future growth, results of operations, business prospects and opportunities of Goldgroup. These forward-looking statements reflect Goldgroup's current internal projections, expectations or beliefs and are based on information currently available to Goldgroup. In some cases forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "budget" or the negative of those terms or other comparable terminology. Certain assumptions have been made regarding the forecast 2010 production at Cerro Colorado of between 25,000 to 30,000 ounces of gold. Many of these assumptions are based on factors and events that are not within the control of Goldgroup and there is no assurance they will prove to be correct. Such factors include, without limitation: capital requirements, fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States and Mexico; price volatility in the spot and forward markets for commodities; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local governments in any country Goldgroup currently or may in the future carry on business; taxation; controls; regulations and political or economic developments in the countries in which Goldgroup does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits, diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance, to cover these risks) as well as "Risks and Uncertainties" included in the Annual Information Form and MD&A for Goldgroup available at www.sedar.com. Forward-looking information is not a guarantee of future performance and actual results and future events could differ materially from those discussed in the forward-looking information. All of the forward-looking information contained in this news release is qualified by these cautionary statements. Although Goldgroup believes that the forward-looking information contained in this news release are based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Accordingly, readers are cautioned against placing undue reliance on forward-looking information. Goldgroup expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.
This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.
SOURCE Goldgroup Mining Inc.
For further information: For further information: on Goldgroup, please visit Goldgroup's website at www.goldgroupmining.com or contact: Keith Piggott, CEO, Gregg Sedun, Executive Chairman, T: (604) 682-1943; Michael Farrant, President, T: (416) 278-4149