The Gold Resource $372M Deal is set to reshape a slice of North America’s mining landscape, as gold and silver producer Gold Resource Corp. agreed to be acquired by Canadian-based Goldgroup Mining Inc. in an all-share transaction valued at about $372 million.
Announced Monday, the agreement links two companies with deep roots in Mexico, combining producing mines and development projects into a single, more diversified mining platform.
Share exchange sets valuation
Under the terms of the deal, Gold Resource shareholders will receive 1.4476 shares of Goldgroup common stock for each Gold Resource share they hold. Based on Goldgroup’s closing share price on Friday, the exchange values Gold Resource at $2.25 per share, the companies said.
Following completion, Gold Resource shareholders are expected to own roughly 40% of the combined company.
Assets span multiple Mexican mines
Goldgroup brings to the transaction two so-called high-growth gold assets in Mexico. Gold Resource, meanwhile, operates as a producer, developer and explorer, with its flagship operations centered on the Don David Gold Mine in Oaxaca.
Once merged, the combined company’s portfolio will include the Don David Gold Mine, the Back Forty Project, the Cerro Prieto Mine and the San Francisco Mine. The companies said the lineup of producing assets offers significant exploration upside and growth potential.
