Gold bars.LISI NIESNER/Reuters
Goldgroup Mining Inc. says it has struck a deal to buy Almaden Minerals Ltd.'s 30 per cent stake in the Caballo Blanco gold project in Mexico.
Monday's deal gives the Vancouver junior miner full control of the gold development.
Under the transaction, Goldgroup will pay Almaden $2.5-million in cash and issue seven million shares to the seller and another seven million based on certain resource and production milestones at the project.
Moreover, Goldgroup will also transfer to Almaden its 40 per cent stake in the El Cobre property and grant a 1.5-per-cent net smelter royalty interest on the Caballo Blanco project.