Business
Paramount Gold to Acquire an 80% Interest in over 6,000 Hectares Surrounding Their San Miguel Project in Mexico
Paramount Gold to Acquire an 80% Interest in over 6,000 Hectares Surrounding Their San Miguel Project in Mexico.
About this update from Garibaldi Resources Corp.
[{"type":"text","content":"\n\n\n\n\nCHIHUAHUA, MEXICO, October 10 /CNW/ - Paramount Gold Mining Corp.\n(OTC:PGDP) (FWB:P6G) (WKN:A0HGKQ) announced today that they have signed a\nletter of intent setting out the terms of an option to acquire an 80% interest\nin over 6,000 hectares of property from Garibaldi Resources Corp. (TSX\nVENTURE:GGI). The additional property surrounds Paramount's San Miguel project\nand adjoins Paramount's Andrea concession to the east of San Miguel.\n\nParamount's Manager of Exploration in Mexico, Bill Reed, commented: \"I am\nvery pleased that we have come to terms on an option to acquire this strategic\npiece of property that fills the gap in our land position between our San\nMiguel and Andrea concessions. More importantly, it surrounds much of our San\nMiguel project where I believe our drill program is proving a substantial\nprecious metal discovery. I am looking forward to working with Garibaldi to\nexplore the potential of these new concessions.\"\n\nThe terms of the formal agreement to be entered into within 60 days\nprovide that Paramount issue Garibaldi 100,000 restricted shares and spend US\n$300,000 within 18 months to earn a 50% interest, and issue an additional\n100,000 shares with a further exploration commitment of US $400,000 within 36\nmonths to earn a 70% interest. Paramount may increase its interest to 80% by\nmaking a payment to Garibaldi of US $500,000 or an equivalent amount of\nParamount common shares within 48 months from the date of this agreement.\n\nAbout San Miguel\n\nSan Miguel is currently comprised of 16 concessions covering an estimated\n6 kms strike of silver and gold mineralization. It is located in Chihuahua,\nMexico and lies in the Guazapares Mining District, part of the gold-silver\nbelt of the Sierra Madre Occidental. Paramount signed an agreement in August\n2005 with Amermin S.A. de CV, a subsidiary of Tara Gold Resources, to acquire\na 70% interest in the San Miguel project.\n\nAbout Paramount Gold\n\nParamount Gold Mining Corp. is a precious metals exploration and\ndevelopment company. It is management's objective to grow Paramount into a\nsignificant gold and precious metals producer by developing the San Miguel and\nLinda projects in Mexico and Peru, and the Andean Gold Alliance with\nTeckCominco in South America, and by acquiring other advanced-stage projects\nand/or producing mines in...