Paramount Gold Nevada Has Closed Its Registered Direct Offering and Concurrent Best Efforts Offering in Canada
Paramount Gold Nevada Corp. (NYSE American: PZG) has closed its non-brokered registered direct offering in the U.S. and a concurrent agency offering in Canada, totaling 4,807,700 shares at US$1.04 per share, raising US$5 million. The funds will strengthen Paramount's balance sheet and support critical milestones for the Grassy Mountain Gold Project, including permitting and a forthcoming feasibility study. CEO Rachel Goldman announced that drilling will commence at the Frost project pending permit approval.
- Raised US$5 million to strengthen balance sheet.
- Funds to support critical milestones for the Grassy Mountain Gold Project.
- Upcoming feasibility study expected to boost project progression.
- None.
WINNEMUCCA, Nev., June 30, 2020 (GLOBE NEWSWIRE) -- 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
“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
Paramount owns a
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. 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 Officer
Christos Theodossiou, Director of Corporate Communications
866-481-2233
Twitter: @ParamountNV
FAQ
What was the total amount raised in the Paramount Gold Nevada Corp. offering?
What is the purpose of the funds raised by Paramount Gold Nevada Corp.?
When is the feasibility study for the Grassy Mountain project expected to be completed?
What projects will Paramount Gold Nevada Corp. initiate after receiving permits?
