U.S. Gold Mining Company Now Minting Gold Coins

Shareholders of a Colorado-based gold mining company will soon have the choice of getting their dividends in U.S. dollars or gold coins minted by that company.

Gold Resource Corp., which operates in the southern Mexico state of Oaxaca, is using a small, private mint to produce the one-ounce gold Double Eagle coins. The company plans to offer shareholders the one ounce coins in both gold and silver.

Holding physical gold and silver in our treasury provides an excellent means of diversification in light of today's world economic conditions and not only provides that diversification to shareholders but underscores Gold Resource Corporation's commitment to precious metals, said Jason Reid, president of Gold Resource Corp.

With the unprecedented printing of fiat currencies around the world and the potential negative impact of governmental policies of various nations around the globe, Gold Resource Corp. provides investors excellent precious metal exposure from an increasing production profile, from dividends and now with physical exposure in the company's treasury.

Besides offering shareholders who are interested in getting in-kind dividends an alternative to U.S. dollars, Gold Resource is minting the coins to diversify its own treasury holdings.

The initial minting will diversify about $1 million of the company's treasury into physical precious metals. To the extent that the company's production increases and its treasury expands it expects it will hold an increasing portion of its assets in physical gold and silver, Reid said.

Gold Resource does not have a firm date for launching its gold and silver coin dividend payment program but once the program is up and running it may attract outside investors, said Greg Patterson, who handles business development for Gold Resource.

Certainly it could resonate with the retail market, perhaps more than the institutional investors, he said. We're excited to get this going.

The minting initiative comes as the company is posting exceptional performance, with record production, record revenue and record dividends in the second quarter of this year. Gold Resource, which holds a 100 percent stake in six potential high-grade gold and silver properties in Oaxaca, has had 13 consecutive monthly special dividends since declaring commercial production in July 2010.