Gold Resource enters plan of merger with Goldgroup Mining

Gold Resource Corporation has signed a definitive statement statement and program of merger with Goldgroup Mining, nether which the second volition get each of Gold Resource’s issued and outstanding shares for $372m (C$509.97m).

The transaction volition beryllium executed done a reverse triangular merger successful which Gold Resource volition merge with a wholly owned Goldgroup subsidiary successful accordance with Colorado instrumentality and a program of statement nether the Business Corporations Act (British Columbia).

Following the completion of the transaction, stockholders of Gold Resource are acceptable to clasp astir 40% of the combined entity connected a afloat diluted in-the-money basis.

The transaction has received unanimous support from the Boards of Directors of some companies.

It is expected to adjacent successful the 2nd 4th of 2026, pending customary closing conditions including stockholder support from the companies, arsenic good arsenic support from the Mexican National Antitrust Commission.

Gold Resource president and CEO Allen Palmiere said: “Having successfully executed a turnaround astatine the Don David Gold Mine, the institution is positioned to grow accumulation done the projected transaction.

“The summation of the San Francisco Mine and the Cerro Prieto excavation is expected to summation golden vulnerability and materially heighten currency procreation done higher wide output.”

The assets of the combined institution volition encompass Gold Resource’s operational Don David Gold Mine and the preliminary economical assessment-stage Back Forty Project, on with Goldgroup’s producing Cerro Prieto excavation and the San Francisco Mine, which was precocious acquired.

This operation results successful a diversified mining institution with an accent connected Mexico.

Pro forma revenues are anticipated to beryllium chiefly silver-based, propelled by accumulation astatine the Don David Gold Mine.

"Gold Resource enters program of merger with Goldgroup Mining" was primitively created and published by Mining Technology, a GlobalData owned brand.

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