Goldgroup Mining Buys Cerro Prieto Project
Depending on how much gold is produced at the property, the price tag could be up to $19 million
Vancouver-based Goldgroup Mining Inc. (TSX: GGA) is buying the Cerro Prieto Project for up to $19 million from Orocco Resource Corp. (TSX: OCO).
The purchase price includes a $4.5 million cash payment and up to $14.5 million in other payments, including those based on future gold produced at the properties.
If the deal doesn’t close by June 30, Orocco will pay Goldgroup a $500,000 break up fee.
Cerri Prieto, based in Sonora State, Mexico, is a gold and silver project. Goldgroup already owns several other gold projects across Mexico, including the Cerro Colorado gold mine in Sonora and the Caballo Blanco project in Veracruz.
Orocco is a mineral exploration and mining company, based in Vancouver, which focuses its business on Mexico.