Goldgroup Mining (TSXV: GGA) has taken full ownership of the San Francisco gold mine, closing a deal that pulls the formerly producing Sonora asset out of Mexican bankruptcy proceedings and into the hands of a company betting on a quick restart.
The acquisition sees Goldgroup acquire Molimentales del Noroeste, the entity whose principal holding is the San Francisco property. The transaction ran through a Concurso Mercantil process, Mexico’s equivalent of a Chapter 11 restructuring, with a district court ruling in Goldgroup’s favour in December 2025.
As part of the acquisition, Goldgroup has already acquired 60.24% of the creditor debt recognized by the court, which amounted to US$8.97 million, of which about US$496,000 remains outstanding. It has agreed to pay a further US$2.57 million in three annual installments through 2028 to creditors holding the balance, plus US$1.15 million to secured creditors due this December.
On top of that sit unpaid concession fees, taxes, water commission charges and other obligations estimated at around US$8.9 million, though Goldgroup says it is in talks to settle for less. The Molimentales shares themselves changed hands for a nominal sum, with the bulk of a 100 million peso outlay going toward recapitalizing the company.
The asset also carries royalty commitments to a Royal Gold subsidiary, among them monthly deliveries of 75 gold ounces for 20 months once operations resume, followed by a 1% net smelter royalty on several concessions.
“Closing the San Francisco acquisition is a major milestone for the Company,” CEO Ralph Shearing said, adding that Goldgroup intends to move quickly on infill drilling, refine the mine plan and target a production restart in late 2026 or early 2027.
San Francisco is a fully permitted, two-pit open mine with heap leach facilities and a drilling database stretching past 668,000 metres. A technical report filed in May pegged measured and indicated resources at 1.226 million ounces of gold, with another 178,000 ounces in the inferred category. The property produced close to 1.3 million ounces between 2010 and 2023 before falling idle.
Goldgroup last traded at $1.46 on the TSX Venture.
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