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Para Resources Announces Letter of Intent to Purchase 17,000 Ha of Mineral Rights Surrounding EL Limon Mine
Mineral rights provides El Limon with sufficient feed material to exceed 200 TPD mill capaci...
About this update from Soma Gold Corp.
[{"type":"text","content":"Para Resources Announces Letter of Intent to Purchase 17,000 Ha of Mineral Rights Surrounding EL Limon MineMineral rights provides El Limon with sufficient feed material to exceed 200 TPD mill capacity; Para also announces the appointment of Mr.\nGlenn Walsh as Director of the Company\nVANCOUVER, BC / ACCESSWIRE / May 5, 2016 / Para Resources Inc. (the \"Company\" or \"Para\") (TSXV: PBR) (WKN: A14YF1) is pleased to announce it has entered into a letter of intent by which Para would acquire, directly or through a Colombia company controlled by Para, an undivided 100% interest in all of the mineral concessions owned by Otu Gold, Ltd. (\"Otu Gold\") consisting of approximately 17,000 hectares located in the Segovia Gold Belt of Northeast Colombia that are located North of 1300000 N including any mining concessions, registered contracts with processing plants and drilling permits already in place.\nSubject to the terms and conditions the letter of intent, Para will acquire an undivided 100% interest in and to the Property in consideration of the purchase price of $1,000,000 USD, payable by Para as follows:\n(a) $500,000 USD on closing of the Transaction;\n(b) $250,000 USD pursuant to a promissory note payable on the date that is one year from the closing date of the Transaction;\n(c) $250,000 USD payable by the issuance to Otu Gold of that number of common shares of Para calculated based on the average weighted trading price of Para's shares for the five trading days immediately before the Closing Date.\nIn addition, as part of the Transaction, Otu will cause the assignment and transfer to Para directly, or through a Colombia company controlled by Para, all of the rights, interests and obligations of Minerales Otu S.A.S. in the contracts with Equilibria Colombia S.A.S. covering the Alacrán, Delirios and Diamantina claims.\nPara will also grant to Otu Gold a 2% net smelter royalty from the sale of minerals produced from the Property. Para may, at its discretion at any time for a period of five years from the closing date, reduce the NSR from 2% to 1% for consideration of $1 million USD payable to Otu Gold as to $750,000 USD in cash and $250,000 by the issuance of that number of common shares of Para calculated based on the average weighted trading price of Para's shares for the five trading days immediately before the closing d...