Gold Resource Corporation Announces Ownership Interest in Green Light Metals Inc. Upon Promissory Note Conversion Into Common Shares
December 28 2022 - 9:28PM
Business Wire
Gold Resource Corporation (NYSE American: GORO) (the
“Company”) announces that its wholly-owned indirect subsidiary
Aquila Resources USA Inc. (“Aquila USA”) has received 12,250,000
common shares of Green Light Metals Inc. (“Green Light”). The
shares were issued upon the conversion at maturity of a
non-interest bearing promissory note of Green Light in the
principal amount of C$4.9 million (the “Green Light Note”) dated
October 4, 2021, as amended. The shares were issued on December 28,
2022 at a conversion price of C$0.40 per share, and represent
approximately 28.51% of the issued and outstanding shares of Green
Light.
The Green Light Note was issued to Aquila USA in partial
consideration for the C$7.0 million sale by Aquila USA to Green
Light of a 100% interest in Aquila USA’s Bend and Reef exploration
assets located in the State of Wisconsin, which was completed on
October 4, 2021. At the time of such sale, the parent company of
Aquila USA was Aquila Resources Inc. (“Aquila”), which was
subsequently acquired by the Company on December 10, 2021 pursuant
to a plan of arrangement under the Business Corporations Act
(Ontario).
Prior to the conversion of the Green Light Note, the Company did
not own or exercise control or direction over any Green Light
shares. The Company will continue to monitor the business,
prospects, financial condition and potential capital requirements
of Green Light. Depending on its evaluation of these and other
factors, and subject to any applicable provisions of an investor
rights agreement dated October 4, 2021 between Aquila and Green
Light, the Company may from time to time in the future increase or
decrease its direct or indirect ownership, control or direction of
common shares or other securities of Green Light through private
agreements, subscriptions from treasury, market transactions or
otherwise, and may from time to time engage in discussions with, or
make proposals to, Green Light or other third parties.
About Gold Resource
Corporation
Gold Resource Corporation is a gold and silver producer,
developer, and explorer with its operations centered on the Don
David Gold Mine in Oaxaca, Mexico. Under the direction of an
experienced board and senior leadership team, the Company’s focus
is to unlock the significant upside potential of its existing
infrastructure and large land position surrounding the mine in
Oaxaca, Mexico and to develop the Back Forty Project in Michigan,
USA. For more information, please visit the Company’s website,
located at www.goldresourcecorp.com and read the Company’s Form
10-K for an understanding of the risk factors associated with its
business.
Forward-Looking Information and other
Cautionary Statements
This press release contains forward-looking statements that
involve risks and uncertainties. The statements contained in this
press release that are not purely historical are “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
When used in this press release, the words “will”, “may”, "intend",
“propose” and "expect" and similar expressions are intended to
identify such forward-looking statements. Such forward-looking
statements include statements regarding the Company’s plans or
future intentions regarding its ownership, control or direction
over shares of Green Light.
All forward-looking statements in this press release are based
upon information available to the Company on the date of this press
release, and the Company does not assume any obligation to update
any such forward-looking statements, except as may be required by
applicable securities laws. Forward looking statements involve a
number of risks and uncertainties, and there can be no assurance
that such statements will prove to be accurate. Such risks and
uncertainties and other factors that could cause actual results and
future to differ from those expressed or implied by the
forward-looking statements include, but are not limited to: the
business, prospects, financial condition and potential capital
requirements of Green Light, risks associated with the ownership of
securities generally and regulatory requirements or developments.
Additional factors that could cause or contribute to such
differences include, but are not limited to, those discussed in the
periodic and current reports filed by the Company with the
Securities and Exchange Commission, including the Company’s Annual
Report on Form 10-K.
For further information, including to obtain a copy of the
corresponding report filed by the Company with Canadian securities
regulators (a copy of which can also be found under Green Light’s
profile at www.sedar.com), please email info@grc-usa.com or call
303-320-7708.
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info@grc-usa.com 303-320-7708
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