VANCOUVER, April 10, 2013 /PRNewswire/ - Goldgroup Mining Inc. ("Goldgroup") (TSX:GGA) (OTC:GGAZF) (BMV SIC:GGAN.MX) and Oroco Resource Corp. ("Oroco") (TSXV:OCO (Frankfurt: OR6) (the "Companies") are pleased to announce that, further to the binding letter agreement between them ( see News Release dated January 28, 2013 ), the Companies have now signed a formal purchase agreement for Goldgroup to purchase from Oroco a 100% interest in the Cerro Prieto Project. The closing of the transaction is subject to approval by the shareholders of Oroco and the TSX Venture Exchange as well as standard closing conditions.
Oroco will seek the approval of its shareholders at a general meeting of its shareholders expected to be held in June, 2013. Oroco also announces that it has obtained binding lock-up agreements in support of the transaction from shareholders representing not less than 22% of the outstanding shares of the Company.
Goldgroup is a well-funded Canadian-based gold production, development, and exploration company with significant upside in a portfolio of projects in Mexico, including its flagship 100%-owned advanced stage gold development project Caballo Blanco in the state of Veracruz, and a 50% interest in DynaResource de Mexico, S.A. de C.V., which owns 100% of the high-grade gold exploration project, San José de Gracia located in the state of Sinaloa. The Company also operates its 100%-owned Cerro Colorado gold mine in the state of Sonora.Goldgroup remains in a flexible financial position with a strong cash balance, no debt and no gold hedging. The Company is led by a team of highly successful and seasoned individuals with extensive expertise in mine development, corporate finance, and exploration in Mexico. Goldgroup's mission is to increase gold production, mineral resources, profitability and cash flow, building a leading gold producer in Mexico.