COLORADO SPRINGS, CO--(Marketwired - Feb 26, 2014) - Gold Resource Corporation (NYSE MKT: GORO) (the "Company") announced today that a wholly owned subsidiary of Gold Resource Corporation has entered into a subscription agreement with Canamex Resources Corp. ("Canamex") (TSX VENTURE: CSQ) (OTCQX: CNMXF) to acquire 22,222,222 common shares of Canamex, to be issued from the treasury of Canamex on a private placement basis, at a price of Cdn $0.09 per share for the aggregate purchase price of Cdn $2,000,000. Upon completion of the share acquisition, Gold Resource Corporation anticipates that it will hold approximately 18.4% of the issued and outstanding shares of Canamex.
Pursuant to the terms of the subscription agreement, the Company will have the right to appoint one representative to the Board of Directors of Canamex, provided that the Company holds more than 10% of the issued and outstanding shares of Canamex. The closing of the proposed transaction is subject to certain conditions, including the approval of the TSX Venture Exchange.
The shares of Canamex will be acquired by the Company for investment purposes. It is the Company's intention to evaluate its investment in Canamex on a continuous basis, and its holdings in Canamex may be increased or decreased in the future as the Company may determine appropriate for investment purposes.
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 six potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The Company has 53,779,369 shares outstanding, no warrants and no debt. Gold Resource Corporation offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery. 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.
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 SEC.