VANCOUVER,
March 31, 2014 /PRNewswire/ -
Goldgroup Mining Inc. ("Goldgroup" or the "Company") (TSX:GGA,
OTC:GGAZF, BMV SIX:GGAN.MX) advises that Sonoran Resources
LLC and its Mexican subsidiary, SR Servicios Mineros, S.A. de C.V.
(jointly, "Sonoran"), have filed a lawsuit in Arizona, USA against Oroco Resource Corp.
("Oroco"), Minas de Oroco Resources S.A. de C.V. ("Minas de Oroco")
and Goldgroup. The lawsuit arises from Oroco's sale of the
Cerro Prieto project to Goldgroup
(the "Acquisition") and pertains to certain contracts (the "Sonoran
Contracts") that were in place between Oroco, Minas de Oroco and
Sonoran prior to the Acquisition.
Sonoran alleges that Goldgroup breached
contracts between Sonoran and Oroco and Minas de Oroco, to which
Goldgroup was not a party, and that it intentionally interfered
with Sonoran's business expectations, causing the loss of net
profits from the fees claimed to be payable pursuant to the
Sonoran Contracts if they had been carried out. Goldgroup is
protected by an indemnity agreement between it and Oroco, which
includes all damages and costs that relate to a lawsuit such as
this. Sonoran is seeking damages in an amount to be
determined at trial, but claimed to be in excess of US$3,000,000.
Goldgroup maintains that the Sonoran Contracts
were terminated in accordance with the terms of those
contracts. It is Oroco's position that this lawsuit, and the
various claims being advanced in it by Sonoran, is an ill-advised
legal strategy intended to force Oroco to pay a net US$177,066.43 (after deduction for double-billing
by Sonoran) in unsupported, post-closing invoices.
Keith Piggott,
Chairman and CEO of Goldgroup, commented: "We believe this to
be an opportunistic claim brought forth by Sonoran against
Goldgroup. The Acquisition agreement with Oroco fully
indemnifies Goldgroup against any claims made by Sonoran. Overall,
we are of the opinion that Sonoran's claims are completely without
merit."
About Goldgroup
Goldgroup is a 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 Prieto and
Cerro Colorado heap-leach gold
mines, both in the state of
Sonora.
Goldgroup 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.
For further information on Goldgroup, please
visit www.goldgroupmining.com
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 considered "forward-looking
information" (within the meaning of applicable Canadian securities
law) and "forward-looking statements" (within the meaning of the
United States Private Securities Litigation Reform Act of 1995).
These statements relate to analyses and other information that are
based on forecasts of future results, estimates of amounts not yet
determinable and assumptions of management. Actual results could
differ materially from the conclusions, forecasts and projections
contained in such forward-looking information. 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 at the Cerro
Prieto project. 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.
Forward-looking information is subject to a variety of known and
unknown risks, uncertainties and other factors that could cause
actual events or results to materially differ from those reflected
in the forward-looking information, and are developed based on
assumptions about such risks, uncertainties and other factors
including, without limitation: uncertainties related to actual
capital costs, operating costs and expenditures, production
schedules and economic returns from Goldgroup's projects;
uncertainties associated with development activities; uncertainties
inherent in the estimation of mineral resources and precious metal
recoveries; uncertainties related to current global economic
conditions; fluctuations in precious and base metal prices;
uncertainties related to the availability of future financing;
potential difficulties with joint venture partners; risks that
Goldgroup's title to its property could be challenged; political
and country risk; risks associated with Goldgroup being subject to
government regulation; risks associated with surface rights;
environmental risks; Goldgroup's need to attract and retain
qualified personnel; risks associated with potential conflicts of
interest; Goldgroup's lack of experience in overseeing the
construction of a mining project; risks related to the integration
of businesses and assets acquired by Goldgroup; uncertainties
related to the competitiveness of the mining industry; risk
associated with theft; risk of water shortages and risks associated
with competition for water; uninsured risks and inadequate
insurance coverage; risks associated with potential legal
proceedings; risks associated with community relations; outside
contractor risks; risks related to archaeological sites; foreign
currency risks; risks associated with security and human rights;
and risks related to the need for reclamation activities on
Goldgroup's properties, as well as the risk factors disclosed in
Goldgroup's Annual Information Form and MD&A. Any and 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 is 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 as may be required by, and
in accordance with, applicable securities laws.
SOURCE Goldgroup Mining Inc.