Gold Resource Corporation has signed a definitive arrangement agreement and plan of merger with Goldgroup Mining, under which the latter will acquire all of Gold Resource’s issued and outstanding shares for $372m (C$509.97m).
The transaction will be executed through a reverse triangular merger in which Gold Resource will merge with a wholly owned Goldgroup subsidiary in accordance with Colorado law and a plan of arrangement under the Business Corporations Act (British Columbia).
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Following the completion of the transaction, stockholders of Gold Resource are set to hold around 40% of the combined entity on a fully diluted in-the-money basis.
The transaction has received unanimous approval from the Boards of Directors of both companies.
It is expected to close in the second quarter of 2026, pending customary closing conditions including stockholder approval from the companies, as well as approval from the Mexican National Antitrust Commission.
Gold Resource president and CEO Allen Palmiere said: “Having successfully executed a turnaround at the Don David Gold Mine, the company is positioned to expand production through the proposed transaction.
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By GlobalData“The addition of the San Francisco Mine and the Cerro Prieto mine is expected to increase gold exposure and materially enhance cash generation through higher overall output.”
The assets of the combined company will encompass Gold Resource’s operational Don David Gold Mine and the preliminary economic assessment-stage Back Forty Project, along with Goldgroup’s producing Cerro Prieto mine and the San Francisco Mine, which was recently acquired.
This combination results in a diversified mining company with an emphasis on Mexico.
Pro forma revenues are anticipated to be primarily silver-based, propelled by production at the Don David Gold Mine.
