Goldgroup Mining Inc. entered a binding commitment to invest $75 million in Luca Mining Corp. Through the commitment, Goldgroup has agreed to participate in Luca’s $110 million private placement for its proposed acquisition of the Cozamin mine in Mexico. Luca said it intends to use the net proceeds of the offering to fund a portion of the cash consideration for the Cozamin acquisition.

Following conversion of the subscription receipts into Luca common shares and completion of the Cozamin acquisition, Goldgroup expects to hold approximately 19.9% of Luca shares on a non-diluted pro forma basis.

Moreover, Luca has agreed to provide Goldgroup with certain investor rights as long as Goldgroup owns at least 10% of Luca. The investor rights include the right to nominate two directors to Luca’s board of directors, together with equity participation and anti-dilution rights. Completion of Goldgroup’s investment remains subject to applicable closing conditions, and the Cozamin acquisition remains subject to its own closing conditions.

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