2010 News Releases
May 07, 2010
Goldgroup Mining Inc. Begins Trading May 7, 2010
Vancouver, British Columbia (May 7, 2010) - Goldgroup Mining Inc. ("Goldgroup" or "The Company") is pleased to announce that the Toronto Stock Exchange ("TSX") has given final approval to the business combination (the "Transaction") between Goldgroup, formerly known as Sierra Minerals Inc. (TSX:SIM), and Goldgroup Resources Inc. ("Old Goldgroup"). As previously announced, the Transaction was completed on April 30, 2010. The common shares of Goldgroup, formerly known as Sierra Minerals Inc., which were consolidated on a 2.85 (old) for 1 (new) basis, will commence trading at the open of the market today on the TSX under the new symbol "GGA". On an adjusted basis, the May 6 closing price of SIM of $0.37 equates to $1.05 in terms of GGA. A total of 51,942,637 post-consolidation common shares of Goldgroup were issued to Old Goldgroup shareholders as part of the Transaction such that there are now 84,952,432 post-consolidation common shares of Goldgroup outstanding giving a market capitalization of approximately $89.2 million based on May 6 th's closing price.
About Goldgroup Mining Inc.
Goldgroup is a Canadian based gold production and exploration company focused on Mexico. Goldgroup owns and operates the Cerro Colorado Gold Mine in Sonora, Mexico. All gold production is un-hedged and Goldgroup expects to produce approximately 25,000 to 30,000 ounces of gold in 2010. Goldgroup's portfolio of exploration and development properties includes its 70% owned flagship project, Caballo Blanco in Veracruz, along with its 50% earnable interest in the San José de Gracia high-grade underground project in Sinaloa and the 100% owned El Porvenir project in Aguascalientes.
For further information on Goldgroup, please visit Goldgroup's website at www.goldgroupmining.com or contact:
Keith Piggott, CEO