IRVING, TX / ACCESSWIRE / April 14th, 2020 / OTCQB:DYNR – DynaResource, Inc. (“DynaUSA”) and its subsidiary DynaResource de México SA de C.V. (“DynaMéxico”), the 100% owner of the San José de Gracía high grade gold project in Sinaloa, México, are pleased to announce that on Feb. 20, 2020, a México City court issued its Final Judgment, effectively foreclosing on all shares of DynaMéxico formerly held by Goldgroup Resources Inc., and awarding those shares to DynaMéxico (the “DynaMéxico Foreclosure Judgment”).
The DynaMéxico Foreclosure Judgment awarded to DynaMéxico 100% of the shares of DynaMéxico previously owned by Goldgroup Resources, which is a Subsidiary Company in México owned 100% by Goldgroup Mining Inc. (“GGA.TO”), based in Vancouver, B.C. Prior to the DynaMéxico Foreclosure Judgment, Goldgroup Resources Inc. owned 20% of the total outstanding shares of DynaMéxico (the “Goldgroup Shares of DynaMéxico”). The Goldgroup Shares of DynaMéxico had been held under lien, by DynaMéxico, since October 2016. DynaUSA previously owned 80% of the outstanding shares of DynaMéxico.
Previously, on Dec. 20, 2019, DynaMéxico and DynaUSA announced that the 11th Federal Circuit Collegiate Court in México issued its Final Ruling on Friday, Dec. 6, 2019 (the “DynaMéxico Final Legal Ruling”). In that DynaMéxico Final Legal Ruling, the court determined that Goldgroup Resources’ Amparo challenge was denied.
The DynaMéxico Foreclosure Judgment and the DynaMéxico Final Legal Ruling are not subject to further appeal, protest, or reconsideration.
Goldgroup Mining Inc. chose not to disclose the DynaMéxico Foreclosure Judgment in its Annual Information Form filed March 30, 2020, Nor in its Audited Consolidated Financial Statement filed March 30, 2020.
The DynaMéxico Foreclosure Judgment and the DynaMéxico Final Legal Ruling are the results and culmination of 7 years of legal action by DynaMéxico. Accordingly, all matters before the courts in México with respect to DynaMéxico and Goldgroup Resources are fully and finally resolved.
Legal Summary – Consequences of the DynaMéxico Foreclosure Judgment and the DynaMéxico Final Legal Ruling:
- Goldgroup Resources Inc. retains No Shares of DynaMéxico;
- Goldgroup Resources Inc. retains No Shareholder Rights in DynaMéxico;
- Goldgroup Resources Inc. owes $48,280,808.34 USD in damages to DynaMéxico;
- DynaMéxico owns 100% of the San Jose de Gracía Project.
Commenting on the DynaMéxico Foreclosure Judgment and the DynaMéxico Final Legal Ruling, DynaResource, Inc. CEO, and DynaResource de México SA. de CV. President Mr. K.D. Diepholz noted “The DynaMéxico Foreclosure Judgment and the DynaMéxico Final Legal Ruling constitute full and complete legal victory for DynaMéxico in México. These results are momentous rulings and milestone events in the history of DynaMéxico and DynaUSA. The results obtained in the Mexican courts are directly attributable to the dedicated work of attorneys and advisors representing DynaMéxico in México (Led by Lic. Namen Tellez Neme, México City, and Lic. Jose Santos Ceja, Mazatlán, Sinaloa, México; including many other dedicated contributors). Lic. Tellez Neme, and Lic. Santos Ceja committed countless hours of work on behalf of DynaMéxico, and their dedication, perseverance and passion have provided these fair and expected legal results which preserve the rule of law.
I would like to express my sincere thank you and appreciation to Lic. Tellez Neme and Lic. Santos Ceja for their professional, dedicated representation of DynaMéxico. I would also like to thank the Members of our Board of Directors, our employees, our shareholders, and our many business partners around the world, for maintaining patience and preserving faith in the Company during this long legal challenge.
Now that the seven year long legal action against Goldgroup Resources is completed, the DynaResource family of companies will focus on the test mining and production operations, expansion of operations, and further development of the World Class, San Jose de Gracía high grade gold Project.”
San Jose de Gracia (“SJG”)
The San Jose de Gracía District, currently covering an area of 9,920 Hectares (24,513 acres), is 100% owned by DynaResource de México, S.A. de C.V. (“DynaMéxico”).
More than one million ounces gold was reportedly produced from the SJG District in the early 1900s, originating from high grade gold veins, including approximately 470,000 Oz. gold reportedly produced from the La Purisima area of SJG at an average gold grade of 66.7 g/t. In June 2010, the SJG Project was recognized by the State of Sinaloa as the most significant Gold Project in the State for the year 2010.
Canadian National Instrument 43-101 (“NI 43-101”) Technical Report for DynaMéxico – SJG
On March 28, 2012 DynaMéxico issued a National Instrument 43-101 (“NI 43-101”) compliant Technical Report for the San Jose de Gracía Project (the “2012 DynaMéxico Luna-CAM SJG Technical Report”, the “Technical Report”), and approved by DynaMéxico, the 100% owner of SJG. The 2012 DynaMéxico Luna-CAM SJG Technical Report was prepared by Mr. Ramon Luna, BS, P.Geo., of Servicios y Proyectos Mineros, Hermosillo, México and a Qualified Person as defined under NI 43-101; and by Mr. Robert Sandefur, BS, MSc, P.E., a senior reserve analyst for Chlumsky, Armbrust & Meyer LLC, Lakewood, CO., and a Qualified Person as defined under NI 43-101. The 2012 DynaMéxico Luna-CAM SJG Technical Report includes as Section Fourteen (14) a Mineral Resource Estimate for SJG as prepared by Mr. Sandefur (the “2012 DynaMéxico-CAM SJG 43-101 Mineral Resource Estimate”, and, the “Mineral Resource Estimate”).
On December 31, 2012, DynaMéxico issued an updated NI 43-101 compliant (“NI 43-101”) Technical Report for the San Jose de Gracía Project (the “Updated 2012 DynaMéxico Luna-CAM SJG Technical Report”, and the “Updated Technical Report”). The Updated Technical Report was approved by DynaMéxico and filed with SEDAR on December 31, 2012.
Canadian National Instrument 43-101 (“NI 43-101”) Mineral Resource Estimate for SJG
The 2012 DynaMéxico-CAM SJG Mineral Resource Estimate concentrates on four separate main vein systems at SJG: Tres Amigos, San Pablo, La Union, and La Purisima. The Mineral Resource Estimate includes the following Resources:
(1) Tres Amigos; 893,000 tonnes with an average grade of 4.46 g/t, totaling 128,000 Oz. Au;
(2) San Pablo; 1,308,000 tonnes with an average grade of 6.52 g/t, totaling 274,000 Oz. Au.;
(1) 3,953,000 tonnes in aggregate for the four main vein systems, with an average grade of 5.83 g/t, totaling 741,000 Oz. Au.
The Effective Date of the 2012 DynaMéxico Luna-CAM SJG Technical Reports and including the 2012 DynaMéxico-CAM SJG 43-101 Mineral Resource Estimate is February 6, 2012. The Mineral Resource Estimate is reported using a 2.0 g/t cut-off grade for underground mining. As of the Effective Date of the Technical Reports and Mineral Resource Estimate, there is no preliminary economic assessment report or feasibility study completed for SJG so the precise cutoff grade for underground mining has not yet been determined.
Summary of Recent Operations at SJG
Mineras de DynaResource S.A. de C.V (100% owned by DynaUSA), Mazatlán, Sinaloa, México, and the named operator at the SJG Project in operating agreement with DynaMéxico, commenced start up test mining and pilot milling operations at SJG in January 2016.
DynaMineras funded its activities with $5.75M USD in cash advances received from DynaUSA. DynaMineras test operations at SJG generated over $50.5M USD in revenue and tax receipts from January 2016 to December 2019 (Summary of DynaMineras Operations below):
Test Mining and Pilot Mill Operations for January 2016 through December 2019:
Mined & Processed
Reported Mill Feed Grade
Gross Gold Concentrates Produced
Net Gold Concentrates Sold
Jan. 2016 – Dec. 2019
DynaResource continues to expand its activities at SJG; and projects the increased output to 300 Tons per Day from test underground mining activities and pilot mill operations in 2020.
Future Drilling Programs at SJG and Updated Technical Report
No surface drilling programs have been conducted at SJG since 2011. DynaResource plans future surface drilling at SJG, which is targeted towards defining possible bulk mineable resources, and additional surface drilling at SJG is projected to expand the main resource target areas as well. After the completion of surface drilling programs, DynaResource will expect to update the NI 43-101 Technical Report for SJG.
DynaUSA currently reports 17,750,000 Shares Outstanding.
On behalf of the Board of Directors of DynaResource, Inc.
On behalf of DynaResource de México SA de CV.
On Behalf of Mineras de DynaResource SA de CV.
DynaResource, Inc. – CEO
DynaResource de México SA de CV. – Presidente
Mineras de DynaResource SA de CV. – Presidente
IMPORTANT CAUTIONARY NOTE REGARDING CANADIAN DISCLOSURE STANDARDS
The Company has Shareholders in Canada and accordingly is an “OTC Reporting Issuer” as that term is defined in Multilateral Instrument 51-509, Issuers Quoted in the U.S. Over-the-Counter Markets promulgated by various Canadian provincial Securities Commissions.
Accordingly, certain disclosure in this news release or other disclosure provided by DynaResource has been prepared in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of United States securities laws. In Canada, an issuer is permitted to, and indeed required to provide technical information with respect to mineralization, including reserves and resources, if any, on its mineral exploration properties in accordance with Canadian requirements, which differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC“) applicable to registration statements and reports filed by United States companies pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended. As such, information contained in this news release or other disclosure provided by the Company concerning descriptions of mineralization under Canadian standards may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the SEC and not subject to Canadian securities legislation. This news release or other disclosure provided by the Company may use the terms “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”. While these terms are recognized and required by Canadian regulations (under National Instrument 43-101, Standards of Disclosure for Mineral Projects), the SEC does not recognize them. United States investors are cautioned not to assume that any part or all, of the mineral deposits in these categories, will ever be converted to reserves. In addition, “inferred mineral resources” have a great amount of uncertainty as to their existence and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities legislation, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, although they may form, in certain circumstances, the basis of a “preliminary economic assessment” as that term is defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects. U.S. investors are cautioned not to assume that part or all, of an inferred mineral resource, exists, or is economically or legally mineable.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This News release contains forward-looking statements within the meaning of Section 27 A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Certain information contained in this news release, including any information relating to future financial or operating performance may be deemed “forward-looking”. All statements in this news release, other than statements of historical fact, that address events or developments that DynaResource expects to occur, are “forward-looking information”. These statements relate to future events or future performance and reflect the Company’s expectations regarding the future growth, results of operations, business prospects and opportunities of DynaResource or DynaResource de México. These forward-looking statements reflect the Company’s current internal projections, expectations or beliefs and are based on information currently available to DynaMéxico. In some cases, forward-looking information can be identified by terminology such as “may”, “will”, “should”, “expect”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “projects”, “potential”, “scheduled”, “forecast”, “budget” or the negative of those terms or other comparable terminology. Certain assumptions have been made regarding the Company’s plans at the San Jose de Gracía property. Many of these assumptions are based on factors and events that are not within the control of DynaResource or DynaMéxico and there is no assurance they will prove to be correct. Such factors include, without limitation: capital requirements, fluctuations in the international currency markets and in the rates of exchange of the currencies of the United States and México; price volatility in the spot and forward markets for commodities; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local governments in any country which DynaResource or DynaMéxico currently or may in the future carry on business; taxation; controls; regulations and political or economic developments in the countries in which DynaResource or DynaMéxico does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits, diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; changes in project parameters as plans continue to be refined; accidents; labor disputes; defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance, to cover these risks) as well as those risks referenced in the Annual Report for DynaResource available at www.sec.gov. Forward-looking information is not a guarantee of future performance and actual results and future events could differ materially from those discussed in the forward-looking information. All of the forward-looking information contained in this news release is qualified by these cautionary statements. Although DynaResource and DynaMéxico believe that the forward-looking information contained in this news release is based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Accordingly, readers are cautioned against placing undue reliance on forward-looking information. DynaResource and DynaMéxico expressly disclaim any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events, or otherwise.
For further information on DynaResource, Inc. or DynaMéxico, please contact:
K.D. Diepholz, DynaResource, Inc. CEO; DynaResource de México-Presidente; U.S. Telephone: 972-868-9066
SOURCE: DynaResource, Inc.
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