Last checked at 21 Sep 2010 09:32
Hochschild´s investment in GRC to be diluted to 28%
Gold Resource Corporation (GRC), which is 30% owned by Hochschild Mining plc ("Hochschild" or "the Company") yesterday announced a private placement of approximately $56 million to increase the development of its Oaxaca Mining Unit's production profile, accelerate its exploration programmes, initiate a formal reserve report and to capitalise on new property acquisition opportunities. Hochschild remains supportive of GRC, however, the Board and management team see organic growth through investment in Hochschild´s extensive and rapidly expanding exploration pipeline as the Company´s key priority. As a result, Hochschild has not participated in the proposed financing and its current 30% holding in GRC will be diluted to approximately 28%.
GRC successfully commenced commercial production on 1 July 2010 and has a target of 70,000 ounces of gold (4.2 million silver equivalent ounces) in the first 12 months of commercial production, with a three year target to triple annual production to 200,000 gold equivalent ounces (12 million silver equivalent ounces).
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Enquiries:
Hochschild Mining plc
Isabel Lütgendorf +44 (0)20 7907 2934
Head of Investor Relations
Finsbury
Faeth Birch +44 (0)20 7251 3801
Public Relations
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About Hochschild Mining plc:
Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over forty years' experience in the mining of precious metal epithermal vein deposits and currently operates four underground epithermal vein mines, three located in southern Peru, one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has numerous long-term prospects throughout the Americas.
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