drbubb Posted October 5, 2020 Report Share Posted October 5, 2020 Management must have noticed the GAP relative to GDXJ GORO vs. GDXJ ... 5yr: 2yr: 1yr: 6mo: 10d: $3.32 / $56.58 = r-1.50% SPINOFF Coming Date ET Symbol Type Headline 2020-10-05 U:GORO News Gold Resource Corporation Announces Intent to Create Two Independent, Strategically-Focused Companies with Nevada Mining Unit Spin-Off to Shareholders 2020-09-28 U:GORO News Gold Resource Corporation Declares September Monthly Dividend Gold Resource Corporation (NYSE American: GORO), a gold and silver producer, developer, and explorer with operations in Oaxaca, Mexico and Nevada, USA, today announced its intent to spin-off its Nevada Mining Unit to shareholders as a separate, publicly-traded company (“Spinco”). The transaction is expected to be structured as a pro-rata distribution of 100% of the Spinco shares to Gold Resource shareholders. Approximately 20 million shares of Spinco are expected to be distributed to the Company’s shareholders. Shareholder approval is not required for the spin-off, which is expected to be tax-free to Gold Resource shareholders for U.S. tax purposes. The Spinco transaction is subject to certain customary conditions, including the approval of a Spinco registration statement to be filed with the Securities and Exchange Commission and final approval by the Company’s Board of Directors. The transaction is targeted to be completed by year-end 2020 or the first quarter of 2021. Expected Benefits of the Transaction Permit each company to focus on its own unique strategic business plan Allow each company flexibility to allocate resources and deploy capital in a manner consistent with its own business strategy Unlock a value premium for the Nevada Mining Unit due to its location in one of the world’s premier mining jurisdictions Following the separation, it is expected that Gold Resource will continue to operate and focus on its Oaxaca Mining Unit and its shares will continue to trade on the NYSE American under the symbol “GORO”. Current operations include the Arista underground mine, as well as a large prospective land position of a consolidated 55-kilometer mineralized fault corridor. Nevada Spinco would focus on Nevada Mining Unit operations and growth. Current operations include the Isabella Pearl open-pit mine, as well as four additional high-grade gold exploration properties. To provide operating capital, the Company expects to make a capital contribution of $10 million to Spinco at the time of the transaction. Given its expected capitalization and other financial metrics, the Company expects Spinco to initially trade in the over-the-counter (OTC) public markets. Spinco would consider up-listing to an exchange such as the New York Stock Exchange or Nasdaq at a future date, based on consistently meeting listing standards, market conditions, and strategic timing. Management and Governance Upon completion of the transaction, it is expected that Jason Reid, current CEO, President and director of Gold Resource Corporation, would step down from all executive and director positions with the Company and be appointed CEO, President and director of Spinco. The Company has already undertaken efforts to identify a new chief executive officer for Gold Resource. Link to comment Share on other sites More sharing options...
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