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Para Closes C$18.8 Million (US $14.45 Million) Pre-Paid Forward Gold Purchase Financing with PPG Arizona Holdings LP
Vancouver, British Columbia--(Newsfile Corp. - August 14, 2018) - Para Resources Inc. (TSXV: P...
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[{"type":"text","content":"Para Closes C$18.8 Million (US $14.45 Million) Pre-Paid Forward Gold Purchase Financing with PPG Arizona Holdings LPVancouver, British Columbia--(Newsfile Corp. - August 14, 2018) - Para Resources Inc. (TSXV: PBR) (WKN: A14YF1) (OTC Pink: PRSRF) (the \"Company\" or \"Para\") is pleased to announce that it, along with its subsidiaries, Z79 Gold (USA) Corp. and Gold Road Mining Corp. has entered into a pre-paid forward gold purchase agreement dated August 3, 2018 (the \"PPG Agreement\"), with PPG Arizona Holdings LP, an entity affiliated with Pandion Mine Finance LP (\"Pandion\"). The letter of intent preceding the PPG Agreement was previously announced in the Company's news release dated July 17, 2018. Under the PPG Agreement, Pandion has advanced US $14.45 million (C$18.8 million) to the Company, as pre-payment for the purchase of 44,100 ounces of gold from Para and its subsidiaries (the \"Gold Financing\"). Pursuant to the terms of the Gold Financing, the Company has been provided an aggregate upfront pre-payment amount of US$14.45 million disbursed in one tranche, with a term of 54 months, in exchange for the delivery of up to 44,100 ounces of gold (\"Contract Quantity\"). No gold is required to be delivered 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 PPG Agreement, Pandion also participates in the upside of any increase in the price of gold. Pandion may elect to reduce the Contract Quantity by up to 2,000 ounces in exchange for the issuance of up to 6,352,683 common shares of the Company. Under the terms of the PPG Agreement, the Company's obligations are secured by a first priority charge in favour of Pandion on all the assets of the Company and its subsidiary companies, Z79 Gold (USA) Corp., Gold Road Mining Corp., as well as pledges of the shares of Z79 Gold (USA) Corp. and Gold Road Mining Corp.The use of proceeds of the gold prepayment amount under the PPG Agreement is to finance (i) re-payment of US$5,100,000 to Mojave Desert Minerals, LLC to extinguish 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 develo...