Cutting the Cord...Jul 21, 2010 06:00 ET
Gold Resource Corporation Announces Extinguishment of Exclusive Funding Arrangement With Hochschild Mining
DENVER, CO--(Marketwire - July 21, 2010) - Gold Resource Corporation (GRC) (OTCBB: GORO) (FRANKFURT: GIH) announced today that it has reached 4,000 ounces gold produced within a 45 day period extinguishing the first right of funding in favor of Hochschild Mining. Gold Resource Corporation announced Commercial Production from its Aguila Project in southern Mexico on July 1, 2010.
Pursuant to the Strategic Alliance Agreement between GRC and Hochschild Mining of December of 2008, GRC has notified Hochschild Mining that at least 4,000 ounces of gold has been produced in the requisite 45 day period, therefore terminating Hochschild's right to preferential funding at a discount. The period between June 3rd and July 14th produced approximately 4,390 ounces of gold. The Agreement still provides Hochschild with a right to participate in any future funding up to its prorated ownership interest in GRC.
Gold Resource Corporation's President, Jason Reid stated, "We appreciate Hochschild's assistance as a strategic alliance partner as they have been most helpful in our achieving Commercial Production. With the agreement's 4,000 ounce gold requirement behind us and the extinguishment of a first right of funding, Gold Resource now possesses more flexibility in considering opportunities on a going forward basis."
Mr. Reid continued, "We are very pleased with the Aguila Project's performance since declaring Commercial Production July 1, 2010. Gold sales prior to Commercial Production are not considered revenue for accounting purposes but are considered a reduction in costs of construction. Sales since the declaration of Commercial Production on July 1 are considered revenue and as of July 14th, we have sold concentrates containing 2,895 ounces of gold (that number is part of the 4,390 ounces of gold). Though the results of this first two week period are very good, they may not necessarily reflect production over any future period. We are very pleased with the Project's performance and remain optimistic that our production goals will be met."
About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in five potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The company has 49,380,404 shares outstanding and no warrants. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.
Hochschild Mining plc, and its affiliates do not accept responsibility for the use of project data or the adequacy or accuracy of this release.
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan", "target", "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that production will continue at any specific rate.
Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-K filed with the Securities and Exchange Commission.
Gold Resources Paved the way in July, 2010.
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