Gold Resource Corporation (NYSEAMERICAN:GORO) has told investors the spin-off of its Nevada unit into a separate public company called Fortitude Gold Corp was completed on the last day of 2020 and its aim now is to accelerate growth in Mexico.
Leading the new Nevada-focused miner as CEO will be Jason Reid, who has stepped down from all his roles at GORO, while the new chief executive at the Mexico-focused gold and silver producer and explorer will be experienced executive Allen Palmiere.
In a statement, outlining the new leadership at both companies, GORO said its chairman Bill Conrad has stepped down from that role but will continue to be an independent director.
Current GORO director Alex Morrison becomes its chairman, while Lila A. Manassa Murphy and Joseph Driscoll have also both been hired as independent directors at the Mexico mining group.
"With the completion of the Nevada spin-off, we are excited to now focus our strategy in Mexico on redeploying more cashflow back into the ground for accelerated growth,” said new GORO chairman Alex Morrison.
"Mr Palmiere brings a strong track record of mining industry experience and success over his thirty-five-year career. Having previously served as CEO of several mining companies, we look forward to working with Mr Palmiere to continue to build on Gold Resource Corporation’s success," he added.
The group noted that Palmiere's mining industry experience includes South Africa, Central America, Guyana and Brazil and 10 years in China. His expertise includes operations, executive management and financing, both debt and equity. He also has extensive experience in mergers and acquisitions, noted GORO.
On December 18, GORO revealed that its board had approved the spin-off of Fortitude Gold and also declared a pro-rata distribution of 100% of the outstanding common stock of Fortitude Gold to shareholders of Gold Resource Corp.
GORO shareholders of record received one share of Fortitude Gold for every 3.5 shares of Gold Resource Corporation common stock they held.
Fortitude Gold is currently waiting on approval from the Financial Industry Regulatory Authority (FINRA) and the OTC Markets Group to begin trading under a yet to be announced stock symbol.
Shares in GORO in New York advanced over 13% on the day to US$3.31 each.
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