Business
Paramount Gold Nevada Enters Into an Agreement to Acquire Calico Resources Corp. and its Advanced Stage Grassy Mountain Project
WINNEMUCCA, NEVADA--(Marketwired - March 14, 2016) - Paramount Gold Nevada Corp. ("Paramount" or the "Company") (NYSE MKT:PZG) and Calico Resources Corp. ("Cali
About this update from Paramount Gold Nevada Corp.
[{"type":"text","content":"WINNEMUCCA, NEVADA--(Marketwired - March 14, 2016) - Paramount Gold Nevada Corp. (\"Paramount\" or the \"Company\") (NYSE MKT:PZG) and Calico Resources Corp. (\"Calico\") (TSX VENTURE:CKB) have entered into a definitive arrangement agreement dated as of March 14, 2016 (the \"Arrangement Agreement\") pursuant to which Paramount will acquire all of the issued and outstanding common shares of Calico (the \"Transaction\") by way of a plan of arrangement (the \"Plan of Arrangement\"). Pursuant to the Plan of Arrangement, Paramount will acquire each common share of Calico from Calico's shareholders in exchange for 0.07 of a share of Paramount common stock (the \"Exchange Ratio\"). The Transaction implies a value of USD$0.085 per Calico common share based on the closing prices of each company's common shares on March 11, 2016. Based on the volume-weighted average price (\"20 day VWAP\") of each of the companies on the 20 prior trading days ending on March 11, 2016, the Exchange Ratio represents a premium of approximately 46.5% to Calico's 20 day VWAP share price. Upon completion of the Transaction, Paramount is expected to issue approximately 7,171,209 shares of its common stock to Calico shareholders, with Paramount stockholders to hold approximately 54% of the pro forma entity's common stock, and Calico shareholders to hold the remaining 46%. Paramount stockholder will hold 57% of the pro forma entity's common stock on a fully-diluted basis, and Calico shareholders to hold the remaining 43%. All outstanding options and warrants of Calico not exercised prior to the completion of the Transaction will be cancelled in accordance with the terms of the Plan of Arrangement. Calico holds a 100% interest in the Grassy Mountain Gold Project which consists of approximately 9,300 acres located on private land in Malheur County, Oregon. The Grassy Mountain project contains a gold-silver deposit for which a Preliminary Economic Assessment (\"PEA\") has been prepared and key permitting milestones accomplished. Glen Van Treek, Paramount's President and CEO, said: \"Grassy Mountain is an impressive, advanced stage project with a high grade core averaging 5.32 g/T gold that could be extracted at a very low cash cost per ounce. We believe that advancing the project to prefeasibility will add significant value to our shareholders. This acquisition is co...