Goldgroup Announces Arbitration Confirmation

World News: . []

VANCOUVER, British Columbia, May 14, 2019 (GLOBE NEWSWIRE) -- Goldgroup Mining Inc. (“Goldgroup” or the “Company”) (TSX:GGA, OTC:GGAZF, BMV SIX:GGAN.MX) is very pleased to announce a final judgment in the United States District Court for the District of Colorado (the “Court”) confirming Goldgroup’s previously announced favorable award in the arbitration against DynaUSA, Inc. (“DynaUSA”) in the news release dated August 31, 2016. The order accompanying the final judgment, dated May 9, 2019, rejected every argument DynaUSA raised since the favorable result Goldgroup reached in the 2016 arbitration.

Following the arbitration, DynaUSA filed thousands of pages of briefing and exhibits in an attempt to convince the Court to vacate the arbitration award.  The May 9th order denied DynaUSA’s motion to vacate the award and rejected the recommendation of a United States Magistrate Judge, who had agreed with DynaUSA that the arbitration award should be thrown out. 

In granting Goldgroup’s application to confirm the arbitration award, the Court set forth a detailed history of the matter, including DynaUSA’s practice of filing similar actions in different forums to reach an outcome it deemed favorable.  The Court pointed out a jurisdictional ruling from a Denver federal court that was unfavorable to DynaUSA and a later jurisdictional ruling from a Mexico City court that benefitted DynaUSA.  Because DynaUSA had initiated both of those actions, the Court found DynaUSA’s conduct and arguments, in seeking the same determination from two different courts, to be “disingenuous.”  The conflicting rulings DynaUSA received in those actions were, according to the Court, “of its own making.”

The Court’s order confirms all of the relief outlined in the August 2016 arbitration award, including DynaUSA having to: pay Goldgroup USD$403,913.92 in costs and attorney fees; pay Goldgroup USD$85,613.00 in separate fees and expenses; and pay DynaResource de Mexico, S.A. de C.V. (“DynaMexico”)—an entity in which Goldgroup owns a 50% equity interest—USD$1,044,952.46 for various legal and other expenses that DynaUSA improperly caused DynaMexico to incur.

In addition, the jurisdictional ruling from a Mexico City court that benefitted DynaUSA was challenged in Mexico by Goldgroup and is still pending resolution.

Keith Piggott commented: “We are extremely pleased that the arbitration award has finally been confirmed. We have waited a long time, however, now have a clear definition and legal direction confirmed by the court to pursue the recovery of Goldgroup’s interest in DynaResource de Mexico, S.A. de C.V.”

Further legal proceedings might occur in the U.S. or Mexico.  As of the date of this release, however, Goldgroup has a final judgment and detailed order confirming the expansive relief set forth in the arbitration award. 

Goldgroup is a Canadian-based gold production, development, and exploration Company with a significant upside in a portfolio of projects in Mexico and Ecuador, including a 50% interest in DynaResource de Mexico, S.A. de C.V., which owns 100% of the high-grade gold exploration project, San José de Gracia located in the State of Sinaloa. The Company operates its 100%-owned Cerro Prieto heap-leach gold mine, in the State of Sonora, Mexico, and is continuing the environmental assessment and permitting processes to advance to production the El Mozo property in Ecuador.

Goldgroup is led by a team of highly successful and seasoned individuals with extensive expertise in mine development, corporate finance, and exploration in Mexico and Ecuador. Goldgroup's mission is to increase gold production, mineral resources, profitability and cash flow, with a view to building a leading gold producer.

For further information on Goldgroup, please visit www.goldgroupmining.com

More news and information about Goldgroup Mining Inc.

Published By:

Globe Newswire: 02:25 GMT Wednesday 15th May 2019

Published: .

Search for other references to "goldgroup" on SPi News


Share

Previous StoryNext Story

SPi News is published by Sector Publishing Intelligence Ltd.
© Sector Publishing Intelligence Ltd 2019. [Admin Only]
 
Sector Publishing Intelligence Ltd.
Agriculture House, Acland Road, DORCHESTER, Dorset DT1 1EF United Kingdom
Registered in England and Wales number 07519380.
 
Privacy Policy | Terms and Conditions | Contact Us