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Paramount Gold Nevada Announces $3 Million Private Placement With Proceeds to Advance Permitting at Grassy Mountain
WINNEMUCCA, Nev., June 25, 2018 (GLOBE NEWSWIRE) -- Paramount Gold Nevada Corp. (NYSE American:PZG) ("Paramount” or “the Company”) announced today that the Comp
About this update from Paramount Gold Nevada Corp.
[{"type":"text","content":" WINNEMUCCA, Nev., June 25, 2018 (GLOBE NEWSWIRE) -- Paramount Gold Nevada Corp. (NYSE American:PZG) (\"Paramount” or “the Company”) announced today that the Company has received commitments from accredited investors to purchase common stock and warrants in a private transaction (the “Transaction”). Under the terms of the Transaction, Paramount has agreed to sell 2,400,000 units at $1.25 per unit for aggregate proceeds of $3,000,000. Each unit consists of one share of common stock and one warrant to purchase one-half of a share of common stock. Each warrant will have a two-year term and will be exercisable in the first year at $1.30 per share and in the second year at $1.50 per share. The closing of the Transaction is anticipated to occur on or about July 6, 2018 subject only to the satisfaction of customary closing conditions. There are no commissions to be paid in connection with the Transaction. FCMI Parent Co. and Seabridge Gold Inc. (NYSE:SA) (TSX:SEA), Paramount’s two largest stockholders have subscribed for 380,000 units and 308,000 units respectively, both maintaining their current percentage ownership. Proceeds from the Transaction will be used primarily to advance the mine permitting process for the proposed underground mine at Grassy Mountain. Other uses of proceeds will include an exploration program of several high priority targets which are in close proximity to Grassy Mountain and for general corporate purposes. In connection with the Transaction, the Company has agreed to use its best efforts to file a registration statement with the U.S. Securities and Exchange Commission to register the resale of the shares of common stock issued at closing of the Transaction and the shares issued upon exercise of the warrants. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. The securities offered and sold in the Transaction have not been registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration under the Securities Act and applicable state securities laws. About Paramount Gold Nevada Corp. Paramount Gold Nevada is a U.S. based precious metals exploration and development compa...