Goldgroup Finalizes Acquisition of San Francisco Gold Mine

Goldgroup Mining Inc. has acquired 100% ownership of Molimentales del Noroeste, S.A. de C.V., completing the acquisition through a Concurso Mercantil process in Mexico. With approval from the Mexican Court, this acquisition includes the San Francisco Mine located in Sonora, Mexico. This mine, known for its gold resources, provides Goldgroup an opportunity to consolidate an important gold district in Mexico.

The mine's last technical report indicated 1.4 million ounces of gold in measured and indicated resources. The company plans an aggressive drilling campaign to confirm and upgrade these resources, aiming for a long-term mine plan. The acquisition is expected to enhance Goldgroup's production significantly, potentially tripling its production capacity to over 60,000 ounces per year.

This acquisition will allow Goldgroup to restart low-cost gold production shortly, with plans to explore additional mineralization. The decision to restart is anticipated after resource confirmation and expansion drilling.