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Paramount Gold Nevada Announces Term Sheet for Financing of up to $15 Million With Sprott
WINNEMUCCA, Nev., March 01, 2023 (GLOBE NEWSWIRE) -- Paramount Gold Nevada Corp. (NYSE American: PZG) (“Paramount” or the “Company”) announced today that it has
About this update from Paramount Gold Nevada Corp.
[{"type":"text","content":" WINNEMUCCA, Nev., March 01, 2023 (GLOBE NEWSWIRE) -- Paramount Gold Nevada Corp. (NYSE American: PZG) (“Paramount” or the “Company”) announced today that it has executed a non-binding term sheet with Sprott Resource and Streaming Royalty Corp. (“Sprott Streaming”), for a Royalty Convertible Note (“RCN”) providing for minimum proceeds of $10 million and maximum proceeds of up to $15 million. While substantial technical and legal due diligence has been completed by Sprott Streaming, there can be no assurance that the proposed financing will be completed. The proceeds of the financing will be used to fund the continued permitting of the proposed Grassy Mountain Gold Mine in eastern Oregon, for general corporate purposes and for the repayment of the company’s outstanding convertible notes maturing in September of this year. Paramount CEO, Rachel Goldman commented, “We are delighted to welcome Sprott Streaming as an important partner in our continued efforts to advance Grassy Mountain through permitting and ultimately to a construction decision. Against the backdrop of a challenging equity market for junior resource companies, the financing contemplated by the term sheet we have executed will provide non-dilutive capital that is expected to fund the Company through to the receipt of permits at Grassy.” If the proposed financing is closed, the funds will be available once the Company has received the Notice to Proceed with the development of the project (the ”Notice”) from Oregon state permitting agencies. With the recent acceptance of completeness of the Mine Plan of Operation by the Bureau of Land Management and the Company’s continued progress with State agencies evidenced by the approval of the final Baseline Report earlier this month, we expect the State to issue the Notice in the next few months. Subject to the terms of the definitive documentation, the RCN will carry an interest rate of 10% per annum, which, at the Company’s discretion, will be payable in cash or shares at a 7% discount to the 10-day VWAP from the scheduled date of payment of interest. The RCN may be repaid in cash or through the issuance of the Royalty at the earlier of the commencement of commercial production or 5 years from the RCN closing date. The RCN is convertible into a gross revenue royalty of 3.17% to 4.75% of the gold and silver produced from the p...