Goldgroup Provides a Legal Update
Goldgroup Provides a Legal Update
Vancouver, British Columbia ( April 20, 2021 ) – Goldgroup Mining Inc. (“Goldgroup” or the “Company”)
(TSX:GGA, OTC:GGAZF, BMV SIX:GGAN.MX) announces that on April 16, 2021, the Tenth Circuit Court of
Appeals (the “Circuit Court”) affirmed the May 9, 2019 order and judgment from United States District Court for the
District of Colorado, which confirmed the arbitration award (the “Arbitral Award”) the Company received on August
14, 2016 pursuant to an arbitration held in Denver, Colorado, commencing in March 2014 (the “Arbitration”).
The Circuit Court rejected the appeal lodged by Texas -based DynaResource Inc. (“DynaUSA”) and its Mexican
subsidiary (“DynaMexico”) to vacate the Arbitral Award, which had found that DynaUSA had improperly diluted the
Company's interest in the San Jose de Gracia Mexican mining project, which Goldgroup had earned into pursuant to
an option agreement between the Company and DynaUSA (the “Agreement”).
The Circuit Court’s opinion clarifies several misleading facts previously presented in various news releases issued by
DynaUSA.
Results and Award from Arbitration
The arbitrator concluded that there was no doubt that DynaUSA failed to do what it was obligated to do under the
parties’ Agreement.
The arbitration award confirmed that, under the Agreement:
• The expenditures made by DynaUSA without the approval of the joint Managem ent Committee have to be
reimbursed to DynaMexico, since Goldgroup did not participate in those decisions;
• A detailed ac countability assessment by DynaU SA must be done for Goldgroup for the time period since
June 2011, when DynaUSA excluded Goldgroup from the management of DynaMexico;
• The use of the Power of Attorney of DynaUSA’s CEO, K.D. Diepholz, did not provide authori zation for
Mr. Diepholz to circumvent the Management Committee’s power to approve and oversee expenditures;
• DynaUSA has acted in bad faith, engaged in forum shopping, and breached the terms of the Agreement;
• Certain amounts must be reim bursed to Goldgroup which include but is limited to the fees paid , and to be
paid, in the Mexico City case related to the current dispute;
• A fifth director must be jointly appointed in DynaMexico and the names of prospective candidates
exchanged by the parties; and
• The deliberate dilution by DynaUSA of Goldgroup’s equity interest in DynaMexico was unlawful.
The Company may now pursue the USD $ 1,111,000 bond that DynaUSA posted for the appeal, along with the non -
monetary awards from the arbitration. There is no certaint y that the Company will be successful in the Company’s
pursuit of this bond, nor any certainty that DynaUSA or DynaMexico will not further contest the Arbitral Award, the
Circuit Court’s opinion, or further litigation in Mexico or the United States.
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 project, San José de Gra cia, 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 sea soned individuals with extensive expertise in mine
development, corporate finance, and exploration in Mexico. Goldgroup’s missi on is to increas e 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)
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain information contained in this news release, including any informat ion relating to future financial or operating performance, may be considered "for ward-
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 managemen t. Actual results could differ materially from the conclusions, forecasts and projections contained in
such forward -looking inf ormation. These forward-looking statements reflect Goldgroup's current internal projections, expectations or beliefs and are base d 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", "schedu led", "forecast", "budget" or the negative of those terms or other comparable
terminology. Certain assumptions have been made r egarding 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 n o 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, uncer tainties and other factors including, without limitation: uncertainties related to actual
capital costs, operating costs and expe nditures, production schedules and economic re turns from Goldgroup's projects; uncertainties associated with development
activities; uncertainties inherent in the estimation of mineral resources and precious metal recoveries; uncertainties related to curre nt 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 challeng ed; political and country risk; risks associat ed 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 c onflicts of interest;
Goldgroup's lack of experience in overseeing the construction of a mining project; risks related to the i ntegration 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 relate d to the need for reclamation
activities on Goldgroup's properties, as well as the risk factors disclosed in Gold group's Annual Information Form and MD&A. Any and all of the forward -looking
information contained in this news release is qual ified 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 revis e any
forward-looking information, whether as a result of new information, events or otherwise, e xcept as may be required by, and in accordance with, applicable
securities laws.