Shares of Gold Resource Corporation (AMEX:GORO) surged 17.4% in premarket trading on Monday after the company announced a definitive agreement to be acquired by Goldgroup Mining Inc. (USOTC:GGAZF) through an all-share merger.
Under the agreed terms, Gold Resource shareholders will receive 1.4476 Goldgroup common shares for each Gold Resource share held. This ratio will be adjusted to 0.3619 Goldgroup shares following Goldgroup’s planned four-for-one share consolidation ahead of completion. Based on the exchange terms, the deal values Gold Resource at $2.25 per share, a 39% premium to its January 23, 2026 closing price.
On a fully diluted, in-the-money basis, the transaction places an implied value of roughly $372 million on Gold Resource. After closing, existing Gold Resource shareholders are expected to hold about 40% of the enlarged company.
The combination will form a diversified, multi-asset gold producer. The merged portfolio will include Gold Resource’s operating Don David Gold Mine and its Back Forty Project, currently at the preliminary economic assessment stage, alongside Goldgroup’s producing Cerro Prieto Mine and the recently acquired San Francisco Mine.
“Having successfully executed a turnaround at the Don David Gold Mine, the Company is positioned to expand production through the proposed transaction,” said Allen Palmiere, Gold Resource’s President and CEO. “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.”
The deal has received unanimous approval from the boards of both companies and is expected to complete in the second quarter of 2026, subject to regulatory approvals and shareholder consent. The board of the combined entity will comprise three directors nominated by Goldgroup and two by Gold Resource, while Gold Resource’s senior management team is expected to take on officer roles within the merged group.
Cormark Securities is acting as financial adviser to Gold Resource on the transaction.