Canadian-based gold producer Goldgroup Mining Inc. (TSX:T.GGA
, Stock Forum
) has filed a legal action in Mexico against the President and Chairman of Dyna Resources de Mexico S.A. de C.V. (AKA: DynaMex), a company they hold a 50% stake in, in the latest salvo of a drawn out JV dispute that stretches back to 2012.
Specifically named in this suit is DynaResource boss Koy Wilber Diepholz who, along with his roles at DynaMex, also holds the roles of CEO, treasurer and chairman of DynaResource (OTO:DYNR
, Stock Forum
), Goldgroup’s 49% partner in the venture. The other 1% of the venture is held by Diepholz personally.
A news release
announcing the lawsuit stated the purpose of the suit was “to investigate whether illegal acts were committed by Diepholz in his role as CEO of DynaMex, for his own benefit and for the benefit of Dyna[Resource].”
At issue is a deal in which DynaResource is alleged to have agreed to a deal with its half-owned subsidiary to exchange debt for equity, thereby making DynaResource the majority shareholder. Goldgroup alleges, as half-owner, they didn’t approve the deal.
In late June, DynaResource announced
“that it received on June 21, 2013, 300 Shares of Series B Variable Capital Shares of [DynaMex], in exchange for the settlement of accounts receivable from [DynaMex] in the amount of $31,090,710 Mexican Pesos (approximately $2.4M USD).”
“After the issuance and receipt of the 300 Series B Shares, [DynaResource] holds 80% of the total outstanding Capital of [DynaMex]. DynaMexico owns 100% of the San Jose de Gracia Project in northern Sinaloa, Mexico ("SJG", and the "SJG Property").”
On the same day, Goldgroup responded to a news release
from DynaResource that claimed the agreement had not been consented to by them, and that it represented a conflict of interest, “among other things, because it is a contract between related parties, without the knowledge or consent to such an agreement by all of the DynaMexico shareholders, of which Goldgroup is a 50% holder and was not approved by the disinterested of the directors of DynaMexico.”
Goldgroup stated that they would seek legal recourse.
That came six months after Dyna filed a lawsuit against Goldgroup
in a Dallas court, which Goldgroup called “entirely without merit,” and vowed to challenge vigorously.
That lawsuit alleged
, “among other things, that Goldgroup has wrongfully used property, confidential information and data belonging to DynaMexico and consistently failed to disclose several matters of material importance to the public.”
“The Petition further requests, among other things: (a) a temporary and permanent injunction; (b) declaratory relief; (c) disgorgement of funds alleged to have been improperly raised as a consequence of Goldgroup's wrongful actions; (d) cancellation of shares of DynaMexico stock held by Goldgroup; and, (d) actual and punitive damages.”
Share prices for the $12m market cap Goldgroup dropped 9.5% on the news, down 1c to $0.095.
Shares for the $37m market cap DynaResource remain unchanged.
Meanwhile, Goldgroup continues to get work done. In early September, Goldgroup announced the completion of an acquisition of the Cerro Prieto project in northern Sonora, Mexico, from Oroco Resource Corp., for $4.5 million payable in monthly instalments, 5.5m common shares, assumption of a net smelter return royalty, and a royalty on production.
Goldgroup Mining was formerly known as Goldgroup Resources before it merged with Sierra Minerals Inc. in 2010.