WINNEMUCCA, Nev., June 23, 2020 /CNW/ - Paramount Gold Nevada Corp.
(NYSE American: PZG) ("Paramount" or the "Company") announced today
the pricing of its previously announced non-brokered registered
direct offering and concurrent, best efforts offering in
Canada (collectively, the
"Offerings") of 4,807,700 shares of its common stock, at an
offering price of US $1.04 per share
of common stock.
Proceeds from the Offerings, before deducting agents'
commissions and other estimated offering expenses payable by
Paramount, are expected to be approximately US$5 million.
Closing of the Offerings is anticipated to occur on or about
June 30, 2020, subject to the
satisfaction of customary closing conditions.
Proceeds from the Offerings will be used primarily to advance
the ongoing permitting of the Company's high-grade Grassy Mountain
Gold Project in eastern Oregon and
for general corporate purposes.
The Offerings are being made under the U.S. Securities Act of
1933, as amended, pursuant to a preliminary prospectus supplement
and the accompanying base prospectus under the Company's effective
shelf registration statement on Form S-3 (File No.
333-218295) that was declared effective by the United States
Securities and Exchange Commission (the "SEC") on June 8, 2017 and the best efforts offering in
Canada is being made pursuant to
the Company's preliminary short form prospectus filed with the
Ontario Securities Commission on June 22,
2020. Copies of these documents and the final prospectus
supplement (and the accompanying base prospectus) and the final
short form prospectus will be available under the Company's
profiles at www.sec.gov and www.sedar.com, respectively.
Canadian investors may also obtain the final short form
prospectus for the Offerings, 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, or Cantor Fitzgerald Canada Corporation,
attention: Equity Capital Markets, 181 University Avenue, Suite
1500, Toronto, ON, M5H 3M7, email:
ecmcanada@cantor.com. Canaccord Genuity Corp. and Cantor Fitzgerald
Canada Corporation are not involved in the registered direct
offering by the Company in the United
States.
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 Gold Nevada Corp.
Paramount Gold
Nevada Corp. is a U.S. based precious metals exploration and
development company. Paramount's strategy is to create shareholder
value through exploring and developing its mineral properties and
to realize this value for its shareholders in three ways: by
selling its assets to established producers; entering into joint
ventures with producers for construction and operation; or
constructing and operating mines for its own account.
Paramount owns 100% of the Grassy Mountain Gold Project which
consists of approximately 11,000 acres located on private and BLM
land in Malheur County, Oregon.
The Grassy Mountain Gold Project contains a gold-silver deposit
(100% located on private land) for which results of a positive
Pre-Feasibility Study have been released and key permitting
milestones accomplished.
Paramount owns a 100% interest in the Sleeper Gold Project
located in Northern Nevada, the
world's premier mining jurisdiction. 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). The Sleeper gold project is host to a large gold deposit
(over 4 million ounces of mineralized material) and the Company has
completed and released a positive Preliminary Economic
Assessment.
Safe Harbor for Forward-Looking Statements
This
release and related documents may include "forward-looking
statements" and "forward-looking information" (collectively,
"forward-looking statements") pursuant to applicable United States and Canadian securities laws.
Paramount's future expectations, beliefs, goals, plans or prospects
constitute forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
other applicable securities laws. Words such as "believes,"
"plans," "anticipates," "expects," "estimates" and similar
expressions are intended to identify forward-looking statements,
although these words may not be present in all forward-looking
statements. Forward-looking statements included in this news
release include, without limitation, statements with respect to:
the use of proceeds from the Offerings and the anticipated closing
date of the Offerings. Forward-looking statements are based on the
reasonable assumptions, estimates, analyses and opinions of
management made in light of its experience and its perception of
trends, current conditions and expected developments, as well as
other factors that management believes to be relevant and
reasonable in the circumstances at the date that such statements
are made, but which may prove to be incorrect. Management believes
that the assumptions and expectations reflected in such
forward-looking statements are reasonable. Assumptions have been
made regarding, among other things: the conclusions made in the
preliminary feasibility study for the Grassy Mountain Gold Project
(the "PFS"); the quantity and grade of resources included in
resource estimates; the accuracy and achievability of projections
included in the PFS; Paramount's ability to carry on exploration
and development activities, including construction; the timely
receipt of required approvals and permits; the price of silver,
gold and other metals; prices for key mining supplies, including
labor costs and consumables, remaining consistent with current
expectations; work meeting expectations and being consistent with
estimates and plant, equipment and processes operating as
anticipated. There are a number of important factors that could
cause actual results or events to differ materially from those
indicated by such forward-looking statements, including, but not
limited to: uncertainties involving interpretation of drilling
results; environmental matters; the ability to obtain required
permitting; equipment breakdown or disruptions; additional
financing requirements; the completion of a definitive feasibility
study for the Grassy Mountain Gold Project; discrepancies between
actual and estimated mineral reserves and mineral resources,
between actual and estimated development and operating costs and
between estimated and actual production; and the other factors
described in Paramount's disclosures as filed with the SEC and the
Ontario, British Columbia and Alberta Securities
Commissions.
Except as required by applicable law, Paramount disclaims any
intention or obligation to update any forward-looking statements as
a result of developments occurring after the date of this
document.
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SOURCE Paramount Gold Nevada Corp.