SOURCE: Gold Resource Corporation

Gold Resource Corporation

August 17, 2011 06:00 ET

Gold Resource Corporation Diversifies Treasury Minting Company's Gold and Silver Coins; Targets Future In-Kind Dividend

COLORADO SPRINGS, CO--(Marketwire - Aug 17, 2011) - Gold Resource Corporation (NYSE Amex: GORO) reports holding a portion of the Company's treasury in physical gold and silver. Gold Resource Corporation is a low-cost gold producer with operations in the southern state of Oaxaca, Mexico. The Company has returned over $22 million to shareholders in special monthly dividends since declaring commercial production July 1, 2010.

Gold Resource Corporation's second quarter 2011 results included record production, record revenue and record dividends and the Company's treasury has increased. The Board of Directors has approved minting the Company's first tranche of Gold Resource Corporation Double Eagle one ounce gold and silver coins. This initial minting will diversify approximately $1,000,000 of the Company's treasury into physical precious metals. To the extent the Company's production increases and the treasury expands, the Company anticipates it will hold an increasing portion of its assets in physical gold and silver.

The Company is focused on its comprehensive business plan to become the "go to" gold investment. Part of that multipronged approach consists of holding a portion of its treasury in physical gold and silver as well as possibly offering shareholders holding certain minimum positions the ability to someday receive their dividends in-kind.

"Holding physical gold and silver in our treasury provides an excellent means of diversification in light of today's world economic conditions and not only provides that diversification to shareholders but underscores Gold Resource Corporation's commitment to precious metals," stated Jason Reid, Gold Resource Corporation's President. "Minting Gold Resource Corporation's Double Eagle precious metal coins, currently underway, not only marks the next Company milestone but takes a large step towards potentially offering our shareholders a future in-kind dividend. With the unprecedented printing of Fiat currencies around the world and the potential negative impact of governmental policies of various nations around the globe, Gold Resource Corporation provides investors excellent precious metal exposure from an increasing production profile, from dividends and now with physical exposure in the Company's treasury."

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 six potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The Company has 52,998,303 shares outstanding, no warrants and no debt. Holding a portion of the Company's treasury in physical gold and silver may result in fluctuations in value based on metal prices. 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 Securities and Exchange Commission.

Contact Information

  • Contact:
    Greg Patterson
    Corporate Development
    303-320-7708