Gold Resource Corp (GORO.ob)
, a small and tightly held junior gold in Mexico, has just had a $5m cash injection thanks to silver mining bigboy Hochschild (HOC.L) of Peru.
Interesting for a couple of reasons. Firstly Hochschild (HOC.L) has been beaten up really badly recently and it’s clearly keen to get more gold production on its portfolio. Secondly because this industrious Otto recently wrote a NOBS report on GORO.ob and liked the company, too. As a quick plug, you can get your own copy of the GORO.ob report for a very reasonable $10 (yep, that says ten dollars) and find out more for yourself about the company and maybe why Hochschild thinks the same way. The PayPal is….
otto.rock1 (AT) gmail (DOT) com
….or just use it to write me a mail and ask things. Anyhow, here’s the PR from GORO this morning:
Gold Resource Corporation and Hochschild Mining plc Form Strategic Alliance; $5 Million Private Placement
Wednesday December 10, 6:00 am ET
DENVER, CO–(MARKET WIRE)–Dec 10, 2008 — Gold Resource Corporation (GRC) (OTC BB:GORO.OB – News) (Frankfurt:GIH.F – News) is pleased to announce that it has formed a strategic alliance with Hochschild Mining plc (Hochschild) through a $5 million private placement of 1.67 million shares of GRC’s restricted common stock at $3.00 per share (no warrants). Hochschild is a world leading precious metals producer listed on the London Stock Exchange. Based in Lima, Peru, Hochschild is a mid-tier gold producer and the world’s 4th largest primary silver producer with mining projects in five countries in the Americas including Mexico.
Funding will be used for the continued construction and exploration of GRC’s El Aguila Project in Oaxaca, Mexico. GRC is focused on yada yada continues here