Goldgroup Announces Closing of Definitive Loan Facility Agreement With Accendo

VANCOUVER, British Columbia, June 29, 2020 (GLOBE NEWSWIRE) -- Goldgroup Mining Inc. ("Goldgroup" or the "Company") (TSX:GGA, OTC:GGAZF, BMV SIX:GGAN.MX) is pleased to announce that it has closed a definitive agreement (the "Agreement") in respect of the previously announced secured loan facility (the "Facility") in the amount of USD$3,000,000 (the "Facility Amount") among the Company as guarantor, the Company's subsidiary, Minas de Oroco Resources, S.A. de C.V. ("Minas de Oroco"), as borrower, and Accendo Banco S.A., Multiple Banking Institution, as lender (the "Lender").

Facility Terms

The Facility will be available for drawing for 12 months, and will bear interest at the rate of 12% per annum, accruing on the outstanding amount drawn under the Facility. Repayments will begin 15 months after the first disbursement under the Facility, and be payable in equal installments, quarterly in arrears until the final repayment date of 36 months from the date of the first disbursement. Minas de Oroco will have an option to prepay without penalty any portion of the Facility, subject to 10 days' notice, payment of additional fees or costs associated with prepayment, and minimum prepayment amounts of $200,000. Each disbursement under the Facility can be requested with two days' notice, and will have a separate promissory note.

As consideration for the Loan:

• Minas de Oroco will pay to the Lender an arrangement fee in an amount equal to 0.925% of the Facility Amount, payable on the date of the first disbursement under the Facility; and
   
• the Company will issue to the Lender a total of 7,500,000 common share purchase warrants (each, a "Lender Warrant"). Each Lender Warrant will be exercisable to purchase one common share in the capital of the Company (each, a "Lender Warrant Share") at a price of CAD$0.025 per Lender Warrant Share for a period of 36 months.

The Facility is secured by:

• certain assets of the Company, including the Company's Cerro Prieto project;
  
  
• guarantees by the Company and certain subsidiaries of the Company; and
  
  
• a pledge of the issued and outstanding shares of Minas de Oroco;

Proceeds of the Facility will be for general working capital purposes and to repay an existing secured loan from the Lender.  The Facility, including the issuance of the Lender Warrants to the Lender, is subject to final acceptance of the Toronto Stock Exchange.