Gold Resource Corporation Announces $20 Million Stock Repurchase Program
Ticker Symbol: U:NYSE U:GORO
COLORADO SPRINGS, CO -- (MARKET WIRE) -- 09/27/11
Gold Resource Corporation (NYSE Amex: GORO) today announced that its Board of
Directors has approved a $20 million stock repurchase program. Gold Resource
Corporation is a low-cost gold producer with operations in the southern state
of Oaxaca, Mexico. The Company has returned over $25 million to shareholders
in monthly dividends since declaring commercial production July 1, 2010.
Gold Resource Corporation, in response to the downward pressure on its stock,
is implementing a share repurchase program. Under this program, the Company
may repurchase its common shares from time to time in open market
transactions at prevailing market prices. The program will be funded from
available working capital. The timing and the amount of any repurchases will
be determined by management based on evaluation of market conditions, share
price, and other factors. This Board approved program is effective
immediately, has no pre-established closing date, and may be suspended or
discontinued at any time. The Company is not obligated to repurchase any
dollar amount or specific number of shares of its common stock under the
program.
"Management believes that at current price levels the Company's stock is
undervalued and represents an attractive investment opportunity for the
Company in addition to an opportunity to further reduce its already tight
capital structure," stated Gold Resource Corporation's President, Mr. Jason
Reid. "With only fifty-three million shares outstanding as a producer, in an
industry where most producers have hundreds of millions of shares
outstanding, this share buyback may further leverage our ability to
distribute our meaningful monthly future dividends. This share repurchase
program further demonstrates our commitment to deliver shareholder value."
About GRC:
Gold Resource Corporation is a mining company focused on production and
pursuing development of gold and silver projects that feature low operating
costs and produce high returns on capital. The Company has 100% interest in
six potential high-grade gold and silver properties in Mexico's southern
state of Oaxaca. The Company has 52,998,303 shares outstanding, no warrants
and no debt. For more information, please visit GRC's website, located at
www.Goldresourcecorp.com and read the Company's 10-K for an understanding of
the risk factors involved.
Cautionary Statements:
This press release contains forward-looking statements that involve risks and
uncertainties. The statements contained in this press release that are not
purely historical are forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the Exchange Act. When
used in this press release, the words "plan", "target", "anticipate,"
"believe," "estimate," "intend" and "expect" and similar expressions are
intended to identify such forward-looking statements. Such forward-looking
statements include, without limitation, the statements regarding Gold
Resource Corporation's strategy, future plans for production, future expenses
and costs, future liquidity and capital resources, and estimates of
mineralized material. All forward-looking statements in this press release
are based upon information available to Gold Resource Corporation on the date
of this press release, and the company assumes no obligation to update any
such forward-looking statements. Forward looking statements involve a number
of risks and uncertainties, and there can be no assurance that such
statements will prove to be accurate. The Company's actual results could
differ materially from those discussed in this press release. In particular,
there can be no assurance that production will continue at any specific rate.
Factors that could cause or contribute to such differences include, but are
not limited to, those discussed in the company's 10-K filed with the
Securities and Exchange Commission
Contacts:
Corporate Development
Greg Patterson
303-320-7708
www.Goldresourcecorp.com
