GORO News & Events

Gold Resource (GORO) has entered into a definitive arrangement agreement and plan of merger with Goldgroup Mining (GGAZF), whereby Goldgroup has agreed to acquire all of the issued and outstanding shares of the company's common stock. The company's stockholders will receive 1.4476 common shares of Goldgroup for each share of the company's common stock - adjusted to 0.3619 common shares of Goldgroup for each share of the company's common stock as a result of a four-for-one share consolidation to be completed by Goldgroup prior to closing -. The exchange ratio represents a value of $2.25 per share of the company's common stock, reflecting a 39% premium to the company's closing price on January 23. The transaction values the company's common stock at approximately $372M on a fully-diluted in-the-money basis and based on the value of Goldgroup shares on January 23. The proposed transaction will occur by way of a reverse triangular merger in which the company will merge with a wholly owned subsidiary of Goldgroup, with the Company surviving as a wholly owned subsidiary of Goldgroup. Upon completion of the transaction, GRC stockholders are expected to own approximately 40% of the combined company on a fully-diluted in-the-money basis. The transaction is expected to close in Q2 2026, subject to customary closing conditions including approval by the stockholders of the company and Goldgroup and approval by the Mexican National Antitrust Commission. Upon closing, the board of directors of Goldgroup will be comprised of three directors selected by Goldgroup and two directors selected by the company. The parties anticipate that the executive management team of the company will become the officers of the combined company.

Gold Resource announced preliminary Q4 production results from its Don David Gold Mine that are a significant improvement from previous quarters and represents 45% of the FY25 production. The net result is a significantly improved year-end balance sheet of $25M and no debt. During the quarter, the Company's production profile has transitioned into more of a silver producer, accounting for about 80% of its revenue, including a record sale of 663,503 ounces of silver, 1,785 ounces of gold and a total gold equivalent, or AuEq, ounces of 10,413. For the twelve months ending December 31, 2025, the company sold 23,125 AuEq ounces. "We are extremely pleased to report a such strong finish to 2025, reflecting the successful turnaround in operations and increasing ore production from the new Three Sisters area where higher grades and improved production, combined with record high metal prices," said Allen Palmiere, President and CEO. "During the quarter, we realized an average sale price of $55 per ounce of silver and $4,234 per ounce for gold. In 2026, we expect continued leverage to the silver price with 40% of our production from the Three Sisters area. Overall, we are pleased with the mine's performance, which reflects the execution of the operational plans and new equipment we outlined a year ago. I would like to thank the entire team for their focus and execution in delivering these outstanding operational results."