Goldgroup Mining Raises US$122 Million in Private Placement

Goldgroup Mining Inc., a precious-metals producer and growth-oriented mining company, has successfully closed a non-brokered private placement, raising a record US$122 million. The company issued 33,382,326 units at US$3.65 per unit, exceeding its initial US$75 million target by more than 60%. Each unit consists of one common share and one-half of one common share purchase warrant, with each warrant entitling the holder to acquire one common share at an exercise price of US$5.10 until March 25, 2028.

The Offering, which has strengthened Goldgroup's balance sheet and increased its financial flexibility, will be used for working capital and general corporate purposes, including advancing its existing mining and development portfolio and evaluating strategic investments and M&A opportunities in the mining sector. The company intends to deploy the capital to support production growth, project advancement, and carefully selected external opportunities.

The company's four wholly owned assets include the producing Don David Gold Mine in Oaxaca and Cerro Prieto Gold Mine in Sonora, Mexico; the San Francisco Gold Project in Sonora, which is being advanced toward a potential production restart; and the Back Forty Project in Michigan, which is advancing through permitting and feasibility. Goldgroup's strategy is to build a larger-scale mid-tier mining company through production growth, exploration, mine optimization, project development, and disciplined M&A.

Goldgroup has not made a final allocation of the net proceeds and may reallocate them in response to business opportunities, market conditions, and other circumstances. Pending deployment, the net proceeds may be held in cash, cash equivalents, or short-term investments. There can be no assurance that any acquisition, investment, or other transaction will be identified or completed on acceptable terms or at all.

In connection with the Offering, the company agreed to pay eligible finders a cash commission equal to 5% of the gross proceeds raised from subscribers introduced by those finders, in accordance with applicable securities laws and TSXV policies. The company paid eligible finders aggregate cash commissions of US$4,219,785.04.

Goldgroup Mining Inc. is a precious-metals producer and growth-oriented mining company with four wholly owned assets in Mexico and the United States. The company owns and operates the Don David Gold Mine in Oaxaca and the Cerro Prieto Gold Mine in Sonora, Mexico, and is advancing the San Francisco Gold Project in Sonora toward a potential production restart and the Back Forty Project in Michigan toward permitting and feasibility.