Business
Investment in GRC to be dilut
Investment in GRC to be dilut.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n RNS Number : 0234T Hochschild Mining PLC 21 September 2010 \n \n\n\n\n21 September 2010 \n \nHochschild´s investment in GRC to be diluted to 28%\n \nGold 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%.\n \nGRC 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). \n \n_______________________________________________________________________________\n \nEnquiries:\nHochschild Mining plc\n \nIsabel Lütgendorf +44 (0)20 7907 2934\nHead of Investor Relations\n \nFinsbury\nFaeth Birch &n...