/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS
NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES./
VANCOUVER, Feb. 10 /CNW/ - Goldgroup Mining Inc. (TSX:GGA) ("Goldgroup"
or the "Company") is pleased to announce that it has filed a
preliminary short form prospectus pursuant to which the Company
proposes to complete an offering of 20 million common shares (the
"Offering"). Dahlman Rose & Company, LLC and Canaccord Genuity Corp.
are acting as joint book-running managers for the Offering along with
Jennings Capital Inc. acting as co-manager.
The Company intends to use the net proceeds from the Offering to provide
capital for the development of its flagship Caballo Blanco project in
Veracruz, Mexico and for general corporate purposes.
The Company will grant the underwriters a 30-day option to purchase up
to 3 million additional shares of common stock in the Offering to cover
over-allotments, if any.
Final pricing of the Offering will be determined in the context of the
market prior to the filing of the final short form prospectus in
respect of the Offering. The common shares will be offered in Alberta,
British Columbia and Ontario by way of a short form prospectus and
other jurisdictions outside of Canada pursuant to applicable private
Closing of the Offering is subject to certain conditions including, but
not limited to, the execution of a definitive underwriting agreement
with the managers, the receipt of conditional listing approval for the
common shares to be sold under the Offering by the Toronto Stock
Exchange and applicable regulatory approvals.
The securities have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, or under any state securities laws
and may not be offered or sold in the United States, absent
registration or an applicable exemption from the registration
requirements. This news release does not constitute an offer to sell or
the solicitation of an offer to buy nor will there be any sale of the
securities in any state in which such offer, solicitation or sale would
Goldgroup is a Canadian-based gold producer and is focused on the
acquisition, exploration and development of advanced stage gold-bearing
mineral properties in the Americas. The Company's current gold
production and exploration and development related activities are
conducted exclusively in Mexico, one of the world's most advantageous
mining jurisdictions. Goldgroup owns and operates the Cerro Colorado
Mine in Sonora along with a property portfolio that includes its
interests in the Caballo Blanco Project in Veracruz and the San José de
Gracia Project in Sinaloa.
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 Company's plans in respect of
its mineral resource properties. 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 currently or may in the future 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 www.goldgroupmining.com or contact:
David Fry, Corporate Development
TF: 1-877-655-ozAu (6928)