Gold Resource Corporation (NYSE American: GORO) surged in early trading on Monday. The stock jumped 17.4% in premarket action. The move came after the company announced a definitive agreement to be acquired by Goldgroup Mining Inc. (TSX-V: GGA; OTC: GGAZF). The deal is an all-stock transaction.

First, the companies outlined the exchange terms. Gold Resource shareholders will receive 1.4476 Goldgroup common shares for each Gold Resource share. However, that ratio will change after Goldgroup completes a planned four-for-one share consolidation. As a result, the post-consolidation exchange ratio will be 0.3619 Goldgroup shares per Gold Resource share.

Next, the companies highlighted the valuation. The exchange ratio values Gold Resource at $2.25 per share. That represents a 39% premium to the company’s January 23, 2026, closing price. In addition, the transaction values Gold Resource at about $372 million on a fully diluted, in-the-money basis.

Meanwhile, ownership of the combined company is expected to shift. Once the deal closes, Gold Resource shareholders will own roughly 40% of the merged entity.

Then, the companies pointed to the strategic fit. The merger would form a multi-mine producer with a broader portfolio. On one side, Gold Resource contributes the Don David Gold Mine and the Back Forty Project. On the other side, Goldgroup adds the Cerro Prieto Mine and the recently acquired San Francisco Mine.

In response, Gold Resource President and CEO Allen Palmiere voiced confidence. He said the company is positioned to expand production after completing a turnaround at the Don David Gold Mine. He also emphasized the added scale from the San Francisco and Cerro Prieto mines. According to Palmiere, those assets could lift gold output and meaningfully improve cash flow.

Finally, the path to closing is now in view. Both boards unanimously approved the transaction. The companies expect the deal to close in the second quarter of 2026. Still, it remains subject to shareholder votes and regulatory clearances.

At the same time, governance plans are taking shape. The combined board is expected to include three Goldgroup directors and two Gold Resource directors. Additionally, Gold Resource’s executive team is expected to take officer roles in the new company.

Overall, the merger aims to create a stronger producer. It also signals an effort to drive higher production and better financial performance in the years ahead.

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