Paramount Gold Nevada Has Closed Its Registered Direct Offering and Concurrent Best Efforts Offering in Canada
June 30 2020 - 9:40AM
Paramount Gold Nevada Corp. (NYSE American: PZG) (“Paramount” or
the “Company”) announced today that it has closed its previously
announced non-brokered registered direct offering in the US (the
“US Offering”) and a concurrent best efforts agency offering in
Canada (the “Canadian Offering, and together with the US Offering,
the “Offerings”) of 4,807,700 shares of its common stock at a price
of US$1.04 per common stock. The gross proceeds of the
Offerings totaled US$5 million.
“The continued support of existing shareholders
including Seabridge Gold and the addition of new shareholders
enabled us to raise the full amount we were seeking. This new
capital strengthens our balance sheet and positions us to complete
critical milestones for the next phases of state and federal
permitting for our Grassy Mountain Gold Project. Our
permitting efforts will be complemented by the upcoming completion
of the Feasibility Study which remains on track for release this
summer,” commented CEO, Rachel Goldman.
Ms. Goldman added, “In addition to upcoming
permitting and feasibility milestones, it is our expectation that
we will initiate a drill program upon receipt of all permits at the
highly prospective Frost project, located just 12 miles west of
Grassy Mountain.”
The US Offering was 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 (the “US Prospectuses”). Copies of
these US Prospectuses are available under the Company’s profile at
www.sec.gov. The Canadian Offering was made pursuant to the
Company’s preliminary short form prospectus filed on June 22, 2020
and final short form prospectus filed on June 24, 2020
(collectively, the “Canadian Prospectuses”) with the Ontario,
British Columbia and Alberta Securities Commissions. Copies of the
Canadian Prospectuses are available under the Company’s profile at
www.sedar.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 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
StatementsThis 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. 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; the global epidemics,
pandemics, or other public health crises, including the novel
coronavirus (COVID-19) global health pandemic, and the spread of
other viruses or pathogens 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.
Paramount Gold Nevada Corp. Rachel
Goldman, Chief Executive OfficerChristos
Theodossiou, Director of Corporate
Communications866-481-2233Twitter:
@ParamountNV
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