Goldgroup Mining to merge with Gold Resource Corporation in a $372m deal.

Goldgroup Mining, a Canadian-based gold production and exploration company, agreed to merge with Gold Resource Corporation, a Denver-based precious and base metals producer, developer and explorer, in a $372m deal. Gold Resource Corporation will become a wholly owned subsidiary of the combined company, with existing Gold Resource Corporation stockholders owning approximately 40% and Goldgroup shareholders holding 60% of the new entity. "Having successfully executed a turnaround at the Don David Gold Mine, the company is positioned to expand production through the proposed transaction. The addition of the San Francisco Mine and the Cerro Prieto mine is expected to increase gold exposure and materially enhance cash generation through higher overall output," Allen Palmiere, Gold Resource Corporation President and CEO.