VANCOUVER, Oct. 12, 2012 /PRNewswire/ - Goldgroup Mining Inc. ("Goldgroup" or the "Company") (TSX: GGA) announced today that its Board of Directors has appointed Executive Chairman,Gregg J. Sedun,to also fill the role ofPresident and InterimChief Executive Officer, replacing Mr. Keith Piggott. Mr. Piggott is a major shareholder of the Company and continues to serve on the Company's Board of Directors. This leadership appointment is effective immediately.
Mr. Sedun stated, "On behalf of our Board, I would like to thank Mr. Piggott for his significant contribution to Goldgroup's development over the last sixyears. The Board has determined that the Company's focus going forward remains in optimizing capital and other costs, in addition to streamlining permitting and operational processes in order to ensure production at our flagship project, Caballo Blanco, is completed on a timely basis."
The Board is taking steps to fill the CEO position in an expeditious manner. As interim CEO, Mr. Sedun will provide strong continuity in the transition period and will supervise day-to-day operations of the Company.
Mr. Sedun, LLB, has been Executive Chairman of Goldgroup from its inception six ago years and has extensive knowledge of the Company's operations, in addition to 29 years of expertise in legal, corporate finance, and executive management positions for publicly traded resource companies. Mr. Sedun has been involved as a director and/or founding shareholder in a number of successful companies including as founding director of Diamond Fields Resources Inc. which was acquired by Inco for $4.3 billion. He was also a founding director of Adastra Minerals Inc. which was acquired by First Quantum Minerals Ltd. for $275 million, and was part of the founding shareholder group of Peru Copper Inc. which was acquired by Chinalco in an all-cash $840 million takeover.
Mr. Sedun continued, "The Company has significant growth potential in near-term production and exploration at Caballo Blanco, a management team with proven mine development, operations and production experience, and has significant financial flexibility. My focus will be reviewing, in conjunction with the Board, our corporate strategies to ensure cost-saving measures are implemented and permitting is executed, with an emphasis on maximizing shareholder value."
About Goldgroup
Goldgroup is a well-funded Canadian-based gold production, development, and exploration Company with significant upside in a portfolio of projects in Mexico, including its flagship 100%-owned advanced stage gold development project Caballo Blanco in the state of Veracruz, and 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 also operates its 100%-owned Cerro Colorado gold mine in the state of Sonora.
Goldgroup remains in a flexible financial position with a strong cash balance, no debt and no gold hedging. The Company is led by a team of highly successful and seasoned individuals with extensive expertise in mine development, corporate finance, and exploration in Mexico. Goldgroup's mission is to increase gold production, mineral resources, profitability and cash flow, building a leading gold producer in Mexico.
For further information on Goldgroup, please visit www.goldgroupmining.com
On behalf of the Board of Directors,
Gregg J. Sedun, Executive Chairman, President & Interim CEO
Tel: 604-345-6642
Stephanie Batory, Director of Investor Relations
Toll Free: 1-877-655-ozAu (6928)