Goldgroup Announces Proposed Non-Brokered Private Placement
MNM: 33874773.1
GOLDGROUP ANNOUNCES PROPOSED NON-BROKERED PRIVATE PLACEMENT
Vancouver, British Columbia (July 31, 2020). Goldgroup Mining Inc. (“ Goldgroup” or the “Company”)
(TSX:GGA, OTC:GGAZF, BMV SIX:GGAN.MX) is pleased to announce a non-brokered private placement
of up to 26,666,666 units of the Company (“Units”) at a price of $0.03 per Unit for aggregate gross proceeds
of up to approximately $800,000 (the “Private Placement’). Each Unit will consist of one common share (a
“Common Share”) and one-half of one common share purchase warrant (a “ Warrant”), with each whole
Warrant being exercisable to purchase one Common Share at a price of $0.06 for two years from the date
of closing of the Private Placement.
No commissions or fees are payable in connection with the Private Placement . The proceeds from the
Private Placement will be used to maintain the Company’s existing operations and general working capital
requirements.
The Private Placement is expected to close before the end of August. Closing of the Private Placement is
subject to receipt of all necessary approvals, including approval of the Toronto Stock Exchange. The Units
may be sold: (a) in certain provi nces of Canada on a private placement basis pursuant to the “accredited
investor” exemption or other available and agreed upon exemptions from prospectus requirements; and/or
(b) certain offshore jurisdictions (provided that placement in such offshore juri sdictions does not give rise
to the filing of a prospectus or registration statement or to any continuous disclosure obligations). All
securities issued under the Private Placement will be subject to statutory hold periods expiring four months
and one day from the date of closing of the Private Placement.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be
any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such jurisdiction.
About Goldgroup
Goldgroup is a Canadian-based gold production, development, and exploration Company with a significant
upside in a portfolio of projects in Mexico, including an interest in DynaResource de Mexico, S.A. de C.V.,
which owns 100% of the high -grade gold exploration pr oject, San José de Gracia located in the State of
Sinaloa. In addition, the Company operates its 100%-owned Cerro Prieto heap-leach gold mine, in the State
of Sonora, Mexico.
Goldgroup is led by a team of highly successful and seasoned individuals with ext ensive expertise in mine
development, corporate finance, and exploration in Mexico. Goldgroup’s mission is to increase gold
production, mineral resources, profitability and cash flow, with a view to building a leading gold producer.
For further information on Goldgroup, please visit www.goldgroupmining.com
On behalf of the Board of Directors
Investor Relations
Toll Free: 1-877-655-ozAu (6928)
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MNM: 33874773.1
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 rela te to
analyses and other information that are based on forecasts of future results, estimates of amounts not yet d eterminable 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”, “est imate”, “projects”, “potential”,
“scheduled”, “forecast”, “budget” or the negative of those terms or other comparable terminology. Certain assumptions have be en
made regarding the Private Placement and the Company, including the receipt of Toronto Stock Ex change approval, the proposed
use of proceeds raised pursuant to the Private Placement and 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: receipt of all required stock exchange and
regulatory approvals; the scope, duration and impact of the COVID -19 pand emic; the scope, duration and impact of regulatory
responses to the pandemic on the employees, business and operations; 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; politic al 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.