Business
Para Announces US $16.6 Million Letter of Intent with Pandion Mine Finance, LP
Vancouver, British Columbia--(Newsfile Corp. - July 17, 2018) - Para Resources Inc. (TSXV: PBR...
About this update from Soma Gold Corp.
[{"type":"text","content":"Para Announces US $16.6 Million Letter of Intent with Pandion Mine Finance, LPVancouver, British Columbia--(Newsfile Corp. - July 17, 2018) - Para Resources Inc. (TSXV: PBR) (WKN: A14YF1) (OTC Pink: PRSRF) (the \"Company\" or \"Para\") is pleased to announce that it has signed a non-binding Letter of Intent with Pandion Mine Finance, LP (\"Pandion\") for a financing of US $16.6 million via a Prepaid Forward Gold Purchase Agreement (the \"Purchase Agreement\"). This Letter of Intent sets out indicative terms on which Pandion or any of its designated affiliates proposes, subject to certain terms and conditions, to enter into a definitive Purchase Agreement for an aggregate upfront prepayment amount of US$16.6 million disbursed in one tranche, with a tenor of 52 months, with Para, and its subsidiaries, Z79 Gold (USA) Corp. and Gold Road Mining Corp. (collectively, the \"Sellers\"). The use of proceeds of the gold prepayment amount under the Purchase Agreement is to finance (i) re-payment of the secured notes used in the acquisition of the Gold Road Mine and processing facility in Arizona, U.S.A. (as disclosed in the Company's news release of August 8, 2017), (ii) the development and restart of the Gold Road Mine, (iii) general working capital at Para, and (iv) the payment of certain outstanding liabilities and / or debt of Para.The US$16.6 million financing is subject to the completion of the remaining due diligence and the negotiation and execution of a Prepaid Forward Gold Purchase Agreement.Pursuant to the proposed Purchase Agreement, Pandion would advance to the Company an amount of US$16.6 million in one tranche as partial consideration for the purchase of 50,280 ounces of gold.Over a period of 52 months following the date of the advance, the Company would be obligated to deliver to Pandion 50,280 ounces of gold; however, no gold would be deliverable by the Company during the first 12 months. Pandion would pay to the Company, together with each delivery of gold, an amount per ounce of gold equal to the market price at the time, less a specified discount. During the term of the Purchase Agreement, Pandion would also participate in the upside of any increase in the price of gold.Additionally, Pandion would have the option to elect at any time to receive up to a specified number of common shares to be set on the day immediately p...