DynaResource Inc. said May 17 that it intends to lodge an appeal against a recent court decision that favored Goldgroup Mining Inc. in a dispute over the San Jose de Gracia gold project in Mexico.
The order by the U.S. District Court for the District of Colorado confirmed an August 2016 arbitration award requiring DynaUSA Inc., parent company of DynaResource, to pay US$489,526.92 to Goldgroup, and about US$1.0 million to DynaResource de Mexico SA de CV, an entity 50%-owned by Goldgroup that fully owns the project.
The dispute stems from DynaUSA's alleged breach of a 2006 equity earn-in agreement with Goldgroup., which saw its stake in the joint venture slashed to 20% from 50% after DynaUSA acted in "bad faith" by issuing new stock in the JV.
DynaResource noted that it received favorable ruling from previous proceedings related to the dispute, including Goldgroup's payment of US$48 million and the grant of lien upon Goldgroup's interest in the JV.
Goldgroup filed an appeal on the rulings, and DynaResource said it expects a decision shortly.