Strategy centers on expansion and diversification
The transaction creates a more diversified mining company with a strategic focus on Mexico, described in the announcement as one of the world’s leading regions for mineral potential and production.
Gold Resource President and CEO Allen Palmiere said the company has already completed a turnaround at the Don David Gold Mine and is now positioned to scale up.
“Having successfully executed a turnaround at the Don David Gold Mine, the company is positioned to expand production through the proposed transaction,” Palmiere said. “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.”
Governance and timing
Under the proposed structure, the combined company’s board of directors will consist of five members — three selected by Goldgroup and two chosen by Gold Resource.
The Gold Resource $372M Deal is expected to close in the second quarter of 2026, subject to customary closing conditions.
