Eric Sprott Boosts Goldgroup Mining Stake, Insider Ownership at 7.1%

Eric Sprott, a finance expert, recently purchased 6.7% more shares in Goldgroup Mining for $1.5m, indicating confidence in the company's future. Sprott previously made a bigger purchase of $6.8m worth of shares at $0.30 per share. Insiders have invested their own money in the company, but were buying at lower prices than today's share price. Insider ownership is 7.1%, which is good but not particularly stand-out.

Goldgroup Mining Inc. (OTCQX: GGAZF) has successfully closed a CAD $12 million non-brokered private placement, issuing 15,000,000 units at $0.80 per unit. Each unit includes one common share and one warrant, exercisable at $1.10 per share until August 5, 2027 [1].

Notable investor Eric Sprott, through his corporation, acquired 1,875,000 units for $1.5 million, increasing his ownership to 10.5% non-diluted and 15.2% partially diluted. The company issued 1,086,187 finder's units to finders. The proceeds will be used to pursue strategic acquisition opportunities, including potential operating mines or stakes in mining companies. All securities are subject to a hold period until December 6, 2025 [1].

Prior to the private placement, Mr. Sprott owned 27,954,500 common shares and 13,977,250 warrants, representing 10.4% of the outstanding shares on a non-diluted basis and 14.8% on a partially diluted basis. After the private placement, his ownership increased to 29,829,500 common shares and 15,852,250 warrants, representing 10.5% non-diluted and 15.2% partially diluted [1].

The insider who participated in the private placement acquired 1,875,000 units or 12.50% of the private placement. The insider's participation was considered a "related party transaction" pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (MI 61-101) [1].

The net proceeds from the private placement will be primarily dedicated to the diligent assessment and strategic pursuit of acquisition opportunities. The company aims to leverage these funds to acquire promising mining assets, potentially including operating mines or strategic stakes in other mining companies [1].

Goldgroup Mining is a Canadian-based mining company with two high-growth gold assets in Mexico. The company holds a 100% interest in the producing Cerro Prieto heap-leach gold mine located in the State of Sonora and a 100% interest in the Pinos underground gold development project in Zacatecas State [1].

The company cautions that there is no assurance that a suitable project will be identified, satisfactory due diligence conducted, and any acquisition transaction completed. Further, investors should be aware that completing a transaction can take many months [1].

References:
[1] https://www.stocktitan.net/news/GGAZF/goldgroup-announces-closing-of-non-brokered-private-mjnuovqwlih3.html