LONDON (ShareCast) - Latin America-focused miner Hochschild has increased its ownership in Gold Resource Corporation (GORO.OB - news)
, a US OTC traded underground precious metals mining company, to 23.9%.
The group exercised its option to purchase a further 5m shares of Gold Resource, which has a number of prime development projects in Southern Mexico, for a total cash consideration of $20m. Hochschild used to have a 14.6% stake.
Gold Resources will use $16m of the proceeds to complete the El Aguila project. El Aguila is currently expected to commence production in the second half of 2009 at 70 thousand ounces of gold per year.
"We are delighted to announce this transaction which provides Hochschild further exposure to low cost, high grade ounces in the Southern Mexico, in line with our cluster consolidation strategy," said chief executive Miguel Aramburú.
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