Gold Resource Shareholders Back Goldgroup Merger at Special Meeting

Shareholders who voted at the meeting approved the deal under the proxy statement filed with the SEC on May 29. The merger consideration and structure were disclosed in that filing; the company did not release new financial terms Thursday.

The vote ends a months-long process that began with Goldgroup's initial offer in January. Gold Resource's board recommended the deal in March, citing the challenges of operating a single-mine producer in Mexico's regulatory environment and the difficulty of funding a second project from existing cash flow.

For Goldgroup, the acquisition adds the Don David mine's production profile – roughly 30,000 to 40,000 ounces of gold equivalent annually in recent years – and a land package that stretches across Oaxaca state. The Back Forty project in Michigan adds a North American development option, though its timeline remains uncertain.

The merger sidelines Gold Resource's listing on the NYSE American. Shareholders who voted against the deal have appraisal rights under Colorado law, which lets them seek a judicial determination of fair value for their shares.

Gold Resource shares last traded at $0.31 before the special meeting. The stock has fallen 68% over the past three years on weak production and elevated costs at the Don David mine.