VANCOUVER, Aug. 31, 2016 /CNW/ - Goldgroup Mining Inc. ("Goldgroup" or the "Company") (TSX:GGA, OTC:GGAZF, BMV SIX:GGAN.MX) is pleased to announce the favorable results and award ("Award") from the conclusion of the arbitration ("Arbitration") between Goldgroup and Dyna USA, Inc. ("DynaUSA"). The results and Award were issued by the American Arbitration Association - International Centre for Dispute Resolution ("Arbitrator" or "ICDR") on August 24, 2016. This Award is final, binding and may be enforced in court. A copy of the Award has been filed on SEDAR and posted to our website.
In addition, the Company would like to respond to DynaUSA's legal claims on its recent press release dated August 24, 2016.
Results and Award from Arbitration
Under Article 78 of the Mexican Commercial Code:"In mercantile agreements, each party assumes his obligation in the manner and terms he has chosen; the validity of the commercial transaction depends neither on compliance with formalities nor on specific requirements."In other words, commercial contracts generally are enforceable as drafted.Measured against this standard, the Arbitrator concluded that there is no doubt that DynaUSA has failed to do what they are obligated to do under an Earn-In/Option Agreement with Goldgroup, dated September 1, 2006 (the "Agreement").
The Award, in summary, clarifies several doubts arising from misleading news releases issued by DynaUSA:
The Award was rendered in Denver according to the US Federal Arbitration Act and is fully enforceable in the United States without the need of going through the Mexican judiciary, since the main defendant was DynaUSA, an American company, domiciled in Texas. The merits of the case and the arbitration award are not subject to any review by any court in the US or abroad. Canada, the US and Mexico are signatories of the UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards which provides for the enforcement and recognition of arbitral awards with no authority to enter into the merits of the resolution by the judicial authorities of the parties to that convention.
There may be more proceedings either in Mexico or in the U.S. However, as at the date of this news release, the Company now has a clear definition and legal direction from the Arbitrator.
In detail, the Arbitrator awarded the following to Goldgroup:
DynaUSA press release dated August 24, 2016
Goldgroup would like to address DynaUSA's legal claims against the Company, which were press released on August 24, 2016 and October 13, 2015. Goldgroup will mainly focus on the legal claim in regards to DynaUSA's award in excess of USD$48 million in damages against the Company.
Goldgroup's position in response to the US$48 million claim remains the same with its previous press release (see Goldgroup's October 14, 2015 press release). Goldgroup was never notified of the purported court case, and does not recognize any of the claims mentioned therein and is of the belief that such claims are entirely without merit. More importantly, the Company expects the claim to be voided due to the unambiguous result and Award in favor of Goldgroup.
"After years of legal disputes, we are getting closer to regaining control of San Jose de Gracia," said Keith Piggott, Chairman, President and CEO of Goldgroup, "We'll continue to work towards the enforcement through a Federal United States judge to monetize the Award." Mr. Piggott also commented, "Due to the Award from the Arbitration, Dyna's award of damages in excess of USD $48 million against Goldgroup, by virtue of a ruling issued on October 5, 2015 by the Thirty Sixth Civil Court of the Superior Court of Justice of the Federal District of Mxico, is voided."
Goldgroup is a Canadian-based gold production, development, and exploration Company with significant upside in a portfolio of projects in Mexico, including a 50% interest in DynaResource de Mexico, S.A. de C.V., which owns 100% of the high-grade gold exploration project, San Jos de Gracia located in the State of Sinaloa. The Company also operates its 100%-owned Cerro Prieto heap-leach gold mine, 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, with a view to building a leading gold producer in Mexico.
For further information on Goldgroup, please visit www.goldgroupmining.com
On behalf of the Board of Directors,
Mr. Keith Piggott, Chairman, President and CEO
Toll Free: 1-877-655-ozAu (6928)
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.
SOURCEGoldgroup Mining Inc.