WINNEMUCCA, NV, Oct. 3, 2017 /PRNewswire/ - Paramount Gold Nevada
Corp. (NYSE American: PZG) ("Paramount" or "the Company") announced
today the pricing of an underwritten public offering of 3,200,000
shares of Common Stock, at a public offering price of $1.40 per share. The underwriters will have
a 30-day option to purchase 320,000 additional shares of common
stock to cover over-allotments.
In addition, concurrently with the public offering of Common
Stock, the Company has entered into agreements for the sale, on a
private placement basis, of an aggregate of 1,775,000 shares
of common stock at $1.40 per share to
FCMI Parent Co. (1,075,000 shares) and Seabridge Gold Inc. (700,000
shares).
The gross proceeds from the public offering and private
placement, before deducting underwriting commissions, placement
fees and other estimated offering expenses payable by Paramount,
will be approximately $7.0 million
(approximately $7.4 million if the
option to purchase an additional 320,000 shares is
exercised).
The closings of the public offering and the private placement
are anticipated to occur on or about October
12, 2017, subject to the satisfaction of customary closing
conditions.
Proceeds from the public offering and the private placement will
be used primarily to complete the Pre-feasibility Study on the
Grassy Mountain Project, with a portion also going towards
permitting. Other uses of proceeds will include general
corporate purposes.
Canaccord Genuity Corp. and Cantor Fitzgerald Canada Corporation
are acting as joint-bookrunners of the offering and Roth Capital
Partners is acting as a co-manager.
The offering is being made in the
United States pursuant to a preliminary prospectus
supplement and the accompanying prospectus under the Company's
effective shelf registration statement on Form S-3 (File No.
333-218295) that was filed with the United States Securities and
Exchange Commission ("SEC") on May 26,
2017, and declared effective by the SEC on June 8, 2017 and in Canada pursuant to its preliminary
short-form prospectus filed with the securities regulatory
authorities in the Provinces of Ontario, Alberta and British Columbia.
Copies of these documents will be available at www.sec.gov and
www.sedar.com, respectively.
Investors may also obtain the final prospectus supplement and
final base short form shelf prospectus for the offering, when
available, by contacting Canaccord Genuity Corp. Attention:
Syndication Brookfield Place, 161 Bay Street, Suite 3100, P.O. Box
516 Toronto, ON M5J 2S1, Email:
ecm@canaccordgenuity.com, Cantor Fitzgerald Canada Corporation,
attention: Equity Capital Markets, 181 University Avenue, Suite
1500, Toronto, ON, M5H 3M7, email:
ecmcanada@cantor.com, or Cantor Fitzgerald & Co., Attention:
Capital Markets, 499 Park Ave., 6th Floor, New York, New York, 10022, or by email at
prospectus@cantor.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or other jurisdiction in which such
an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or other jurisdiction. Any offer to buy the securities
may be withdrawn or revoked, without obligation or commitment of
any kind, at any time prior to notice of its acceptance.
About Paramount
Paramount Gold Nevada Corp. is a U.S. based precious metals
exploration company. Paramount holds a 100% working interest
in the Grassy Mountain Project which consists of approximately
9,300 acres located on private and BLM land in Malheur County, Oregon. Additionally,
Paramount owns a 100% interest in the Sleeper Gold Project located
in Northern Nevada. The Sleeper Gold Project, which includes
the former producing Sleeper mine, totals 2,322 unpatented mining
claims (approximately 60 square miles or 15,500 hectares).
SOURCE Paramount Gold Nevada Corp.