Gold Resource Corp. was pleased to announce today that Hochschild Mining plc has agreed to a $20 million private placement, purchasing 5 million restricted shares of GRC’s common stock at $4.00 per share. According to the press release, the capital will primarily be used at the company’s Aguila Project in the state of Oaxaca, Mexico. Hochschild’s holdings in GRC now totals to approximately 24%.
Gold Resource Corporation’s president, William W. Reid stated, “We are pleased to have the continued support and financial assistance of Hochschild Mining during these final phases of project construction. Hochschild has and is assisting us in many ways, in addition to financial support, which has been much appreciated and we look forward to their possible assistance in accelerating exploration of our large property position.”
Mr. Reid added, “We remain committed and focused on putting the El Aguila Project into production in the shortest amount of time possible with the fewest number of shares outstanding. We are doing just that. Though the federal permit timing is one aspect that remains outside of our control, and dictates our ultimate project timeframes, we are optimistic the final federal open pit permit will be granted soon as we have been given no indication to the contrary. With our capital structure of only 46 million shares outstanding our potential to create significant shareholder value remains intact. The ultimate production startup will depend on permit timing, equipment deliveries and construction schedules.”
Miguel Aramburú, Chief Executive Officer of Hochschild Mining plc, commented, “We are delighted to announce this transaction which provides Hochschild further exposure to low cost, high grade ounces in the Southern Mexico, in line with our cluster consolidation strategy. We have been extremely impressed with the quality of GRC’s assets and the speed at which the El Aguila property is being developed. This investment will enable GRC to complete the construction of the mine and plant as well as to further their exploration efforts.”
“It is a very exciting time for Gold Resource Corporation. We have come a long way in a very short period of time for our industry. We are positioning ourselves to emerge, in the very near term, as a low cost producer,” Mr. Reid concluded.
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