TORONTO (miningweekly.com) – London-listed Hochschild Mining has paid $6-million to increase its interest in Gold Resource Corporation (GRC) from 29% to 30%, the company said on Wednesday.

Hochschild, which operates precious-metals mines in Peru, Argentina and Mexico, has invested a total of $69,5-million in GRC.

The smaller firm has projects in southern Mexico, and expects to start commercial production at its El Aguila project by the end of June.

Production from the mine is estimated at 70 000 oz of gold during the first twelve months of operation, Hochschild said.

GRC will use the proceeds of the latest private placement for working capital and ongoing construction of the phase-two tailings impoundment, as it moves towards commercial production at El Aguila.

The company sold its first gold and silver concentrates last month and subsequent concentrate sales have been made from low-grade ore processed during the El Aguila mill startup and commissioning, Hochschild reported.

"We are extremely impressed with the quality of GRC's project portfolio and the fact that the company is progressing towards commercial production at its El Aguila operation, which is expected in the first half of this year,” Hochschild CEO Ignacio Bustamante commented.

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