It will also issue seven million of its common shares to Almaden.
Goldgroup also completed its earn-in of its 70% interest in the Caballo Blanco gold project and with the recent transaction, Goldgroup will now own 100% of the project.
Goldgroup will also provide 1.5% net smelter royalty interest on the Caballo Blanco project to Almaden and will also transfer its 40% interest in the El Cobre property.
In addition, Goldgroup is also expected to pay $650,000 and provide a 0.4% net smelter royalty on the Caballo Blanco project to the original claimholder of the property.
The payment is in settlement of certain rights and subject to certain terms and conditions.
Upon completion of the transaction, Goldgroup’s Caballo Blanco project will be subject to an overall 2.95% net smelter return royalty, which includes a prior 1.5% net smelter return royalty over the 70% interest Goldgroup acquired from NGEx Resources.
The closing of the deal is subject to relevant regulatory conditions.
