Hochschild Mining ups stake in Gold Resource Corporation to 28.7%

Gold Resource Corporation (OTC:GORO, ETR:GIH) confirmed this morning that Hochschild Mining (LON:HOC) has increased its holding to 28.7% after it subscribed for 600,000 shares in a private placement and acquired a further 440,500 shares in the market.

Hochschild Mining, the world’s second largest primary silver producer and an underground mining specialist, has been an avid supporter of Gold Resource Corp.  The Peru based, London listed silver producer has invested a total of US$59.2 million in Gold Resource Corporation to date.

The private placement consisted of 600,000 shares at US$8.62 per share with no warrants, raising US$5.17 million. Hochschild still has an exclusive first right of refusal on any funding, at a discount, until GRC produces 4000 ounces of gold within a 45 day period.

The proceeds will be used at Gold Resource Corporation’s flagship asset, the El Aguila Project, for working capital during mill optimization, training and continued construction of the Phase 2 tailings facility.

 “We are pleased Hochschild is supporting our need for working capital until commercial production is reached. We believe we are very close to our commercial production goal.” William Reid, President of Gold Resource Corporation stated, “Equally, we are pleased to see Hochschild purchasing in the open market as we believe they provide third party validation of our operations and our properties’ potential.”

The El Aguila project commenced production in February 2010 and is expected to produce 70,000 ounces of gold in the first year of operation.

http://www.proactiveinvestors.co.uk/companies/news/14203/hochschild-mining-ups-stake-in-gold-resource-corporation-to-287-14203.html