\nGold Resource Corporation (NYSE American: GORO) (the \u201cCompany\u201d) is pleased to announce the first quarter production results from its Don David Gold Mine. During the quarter, the Company\u2019s production included sales of 374,232 ounces of silver, 1,548 ounces of gold, and a total gold equivalent (\u201cAuEq\u201d) ounces of 8,749. Total cash costs were $2,164 per AuEq ounce, and with continued investment in the mine infrastructure and drilling resulted in an all-in sustaining cost of $3,476 per AuEq ounce. The Company had a net income of $4.7 million, or $0.03 per share, for the quarter.<\/p>\n
\n\u201cWe are pleased to report another strong quarter and returning the Company to positive net income, with $40.2 million in working capital and $31.0 million in cash and cash equivalents as of March 31, 2026,\u201d said Allen Palmiere, President and CEO. \u201cWe continued to make meaningful progress in strengthening operational performance at Don David while advancing the proposed transaction with Goldgroup Mining Inc., which we expect to close in the third quarter. Our ongoing exploration programs continue to expand resources in the area surrounding the mine and the definition drilling has been improving our margins. As we work through the transaction, our team continues to focus on disciplined execution, safety, cost and grade control, and the delivery of returns for our shareholders.\u201d<\/p>\n
Don David Operational Highlights for the Quarter<\/b><\/p>\n Merger Update<\/b><\/p>\n \nOn January 26, 2026, the Company announced that it entered into a definitive arrangement agreement and plan of merger (the \u201cArrangement Agreement\u201d) with Goldgroup Mining Inc. (\u201cGoldgroup\u201d), whereby Goldgroup agreed to acquire all of the issued and outstanding shares of the Company\u2019s common stock (the \u201cTransaction\u201d). Pursuant to the Arrangement Agreement, the Company\u2019s stockholders will receive 1.4476 common shares of Goldgroup for each share of the Company\u2019s common stock (as adjusted by a share consolidation to be completed by Goldgroup prior to closing). The Transaction is expected to close in the third quarter of 2026, subject to customary closing conditions (including approval by the stockholders of each of the Company and Goldgroup). The parties received unconditional approval from the Mexican National Antitrust Commission in respect of the Transaction on April 27, 2026.<\/p>\n\n
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