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Para Resources Announces Definitive Agreements for the Purchase of Operadora, from Mineros in Colombia, Convertible Debt Financing, Share Consolidation and Name Change
Vancouver, British Columbia--(Newsfile Corp. - April 16, 2020) - Para Resources Inc. (TSXV: PB...
About this update from Soma Gold Corp.
[{"type":"text","content":"Para Resources Announces Definitive Agreements for the Purchase of Operadora, from Mineros in Colombia, Convertible Debt Financing, Share Consolidation and Name ChangeVancouver, British Columbia--(Newsfile Corp. - April 16, 2020) - Para Resources Inc. (TSXV: PBR) (WKN: A14YF1) (OTC: PRSRF) (the \"Company\" or \"Para\") announces it has entered into Definitive Agreements (\"Agreement\") with Mineros, S.A. (\"Mineros\") to acquire 100% of its wholly owned subsidiary Operadora Mineras S.A.S. (\"Operadora\") for US$5.5 million. Operadora owns 100% of the La Ye Gold Operations and associated mineral rights. During its due diligence enquiries Para was able to confirm, based on financial statements audited by Deloitte and Touche, Ltda, that the Operadora mine has been profitable in the last two years. The Management team that has operated the mine since startup will remain and continue to manage the combined Colombian operations. Para President and CEO, Mr. Javier Cordova states, \"I look forward to the fresh start in Colombia, with a strong balance sheet and an accretive acquisition which will we expect will turn the Company's operations profitable with a significant holding of underexplored and drill ready land package that is located in one of the most prolific gold areas in the world. The Operadora acquisition adds an operating and profitable mine and mill with proven management and increases the Company's contiguous concession package. In addition, we will immediately be able to take advantage of the Company's strong local community relations and couple it with the experienced exploration team from Operadora. We expect exploration drilling to commence immediately. This transaction puts Para into a solid growth trajectory.\"Acquisition RationaleOperadora's El Bagre Underground Gold Operations (El Bagre) includes an existing gold production facility with a notable portfolio of mineral exploration and capital equipment assets;Operadora's El Bagre and Para's El Limon operations are adjacent, and El Bagre's mineralization trend extends onto the property already controlled by Para;Furthermore, the overall concession package creates a contiguous mineral package of over 27,000 Ha by extending Para's Zara concessions to the North and East;The El Bagre mill is in excellent condition and has been operating at less than full capacity;The El B...