A new Mexico-focused multi-asset producer is in the process of being formed. Goldgroup Mining (TSXV: GGA) has entered into an arrangement to acquire Gold Resource Corp (NYSE: GORO) under an all-stock deal that will bring together two small scale producers.
The arrangement will see GoldGroup’s Cerro Prieto Mine in Sonora, Mexico brought together with Gold Resource Corp’s Don David Gold Mine in Oaxaca, Mexico to establish a small scale multi asset producer. Other assets in the mix include GoldGroup’s San Francisco Mine, a past producing asset that is said to have restart potential, and Gold Resource’s advanced stage Back Forty Project.
On a pro-forma basis, revenues are to come largely from the sale of silver rather than gold, with the resulting issuer said to be silver-focused.
“Taken together, these assets position the Company to emerge as a new Mexico-focused producer. We believe this Transaction is transformational, builds on the momentum we have created, and represents a compelling catalyst for long-term shareholder value creation,” commented Ralph Shearing, CEO of GoldGroup.
Under the terms of the arrangement, Gold Resource shareholders are set to receive 1.4476 common shares of Goldgroup for each share held, which after a post-transaction share consolidation, is said to equate to 0.3619 common shares of Goldgroup. The figure translates to an offer of US$2.25 per share for Gold Resource shareholders, a 39% premium to Friday’s closing price while valuing the company at US$372 million on a fully diluted, in-the-money basis.
Goldgroup shareholders are expected to retain a 60% interest in the resulting company.
The transaction remains subject to shareholder and regulatory approval, with the transaction expected to close in Q2 2026.
GoldGroup last traded at $2.13 on the TSX Venture.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
