Paramount Gold Nevada Buys Down Existing Royalty and Acquires Private Land at Grassy Mountain

About this update from Paramount Gold Nevada Corp.

[{"type":"text","content":" WINNEMUCCA, Nev., Feb. 20, 2018 (GLOBE NEWSWIRE) -- Paramount Gold Nevada Corp. (NYSE American:PZG) (\"Paramount”) announced today that the Company has exercised its option to reduce the existing Net Smelter Royalty (“NSR”) from 6% down to 1.5% and to acquire all rights to the private land at Grassy Mountain where the estimated 1.7 million ounce measured and indicated gold resource lies. In its original lease agreement signed in 2004 and subsequent amendments, the Company was granted an option to purchase the private land and reduce the NSR for a total payment of $2.4 million. In the event the option was not exercised, and based on the assumptions contained in the project’s Preliminary Economic Assessment (“PEA”), the Company would have made approximately $28 million more in future royalty payments over the projected life of the mine once production began. The gold and silver price assumptions in the PEA were $1,300 and $17.50 per ounce respectively. Paramount CEO, Glen van Treek commented: “With a clear path to a mining permit now in sight, we believe Grassy will become Oregon’s first modern day gold mine. Exercising this option has unlocked significant value for our shareholders. The reduction of the NSR will add to our mine cash flows well in excess of the exercise price. We also have the added certainty of direct ownership of the land on which the deposit is located.” The PEA completed by Metal Mining Consultants in July 2015 contemplated a 10 year underground mining operation producing an annual average of 53,000 ounces of gold (excluding silver) with low cash operating costs driven primarily by the project’s high grade which, in the PEA, averages 5.32 g/t gold. Paramount expects to complete a more definitive Preliminary Feasibility Study (“PFS”) for an underground mining operation next month as scheduled. The PFS will include the project’s first estimation of proven and probable reserves. The PFS is a key component in the application for a mine permit. The Company plans to submit its consolidated mining permit application to the Oregon Department of Geology and Mineral Industries (“DOGAMI”) in the first half of 2018. Once the application is accepted as complete by State regulators, a decision should be expected within approximately 300 days. About Paramount Gold Nevada Corp. Paramount Gold Nevada is a U.S. based precious ...

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