Goldgroup Mining closes $122M private placement, exceeding initial target

Goldgroup Mining Inc. (TSXV: GORO) (NYSE American: GORO) has closed a non-brokered private placement, issuing 33,382,326 units at $3.65 per unit for aggregate gross proceeds of approximately $121.8 million, according to a company statement.

The offering surpassed Goldgroup's initial $75 million target by more than 60%, which the company describes as the largest financing in its history. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at an exercise price of $5.10 until March 25, 2028.

The company paid eligible finders aggregate cash commissions of $4,219,785 in connection with the offering.

Goldgroup stated it intends to use net proceeds for working capital and general corporate purposes, including advancing its existing mining and development portfolio and evaluating strategic investments and mergers and acquisitions opportunities in the mining sector. The company noted it has not made a final allocation of the net proceeds.

CEO Javier Reyes said the capital would be deployed to "support production growth, project advancement and carefully selected external opportunities," adding that the company intends to focus on "disciplined capital allocation, operational performance and a relentless focus on creating long-term value per share."

Goldgroup owns four assets, including the producing Don David Gold Mine in Oaxaca and Cerro Prieto Gold Mine in Sonora, Mexico. The company is also advancing the San Francisco Gold Project in Sonora toward a potential production restart and the Back Forty Project in Michigan through permitting and feasibility.

The securities issued are subject to a statutory hold period under Canadian securities laws ending four months and one day after closing. The company received conditional approval from the TSX Venture Exchange, with final approval pending completion of remaining filing requirements.

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