Each one in plain English, with the numbers worked through for a shareholder.
6 July 2009capital raising announcement▲ GoodMajor
On June 30, 2009 the company agreed to sell Hochschild 5,000,000 shares at $4.00 ($20,000,000 total), after Hochschild used its right of first refusal on new equity financing under the 2008 alliance. 1,250,000 shares ($5,000,000) closed immediately and the other 3,750,000 were due by July 20, 2009. Mainly for developing the mill and mine at El Aguila, but $4,000,000 of the second closing is reserved for exploration in a joint-signature bank account.
27 Feb 2009capital raising announcement▲ GoodMajor
On February 25, 2009 Hochschild exercised its option from the December 2008 alliance, agreeing to buy 4,330,000 shares at $3.00 for $12,990,000. Under the alliance terms, this entitles Hochschild to nominate one director and keeps its other rights in force.
What it means for a shareholder
4.3m new shares at US$3.00 to raise about US$13.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Tocqueville Asset Management, L.P. reported a GOLD RESOURCE CORP shareholding of 6,190,273 shares (18.00% of votes) in a periodic institutional filing.
11 Dec 2008capital raising announcement▲ GoodMajor
On December 5, 2008 the company sold 1,670,000 shares at $3.00 to Hochschild Mining Holdings (an affiliate of Hochschild Mining plc) for $5,010,000, and signed a strategic alliance agreement. Hochschild also got an 80-day option to buy 4,330,000 more shares at $3.00 ($12,990,000), plus rights to join future financings, a possible board seat, and a right of first refusal on joint ventures. Its ownership is capped at 40% for two years. These rights lapse if it does not exercise the option or falls below 14.5% ownership. The CEO also held an investor conference call on December 11, 2008.
On December 5, 2007 the company sold 5,413,500 shares at $4.00 each in a private placement, raising $21,654,000 gross. It says it will use the money to buy and build a mill at its El Aguila project in Oaxaca, Mexico, and for working capital. Finder's fees of up to 5% in cash and 5% in shares may be paid, and the company must register these shares with the SEC.
