Business
Para Resources Announces Letters of Intent to Acquire 100% of Colombia Milling Limited and the Termination of the Ojos Negros Acquisition
Increases Para's direct interest in the EL Limon Mine to 61% VANCOUVER, BC / ACCESSWIRE...
About this update from Soma Gold Corp.
[{"type":"text","content":"Para Resources Announces Letters of Intent to Acquire 100% of Colombia Milling Limited and the Termination of the Ojos Negros AcquisitionIncreases Para's direct interest in the EL Limon Mine to 61%\nVANCOUVER, BC / ACCESSWIRE / January 13, 2016 / Para Resources Inc. (the \"Company\" or \"Para\") (TSXV: PBR) (WKN: A14YF1) reports that after completing Phase 1 due diligence on the Ojos Negros property in Mexico it has terminated the binding letter of intent dated April 25, 2015, with Navial Mineria, S.A. de C.V. and Ivonne Alicia Boileve Romero, effective immediately.\nThe Company also reports that it has signed Letters of Intent to acquire the 33.71% interest in Colombia Milling Limited (\"CML\") owned by James Randall Martin (\"Martin\") and the 16.20% interest in CML held by SAEF Exploration Inc. (\"SAEF\"), increasing the Company's ownership of CML to 100% (the \"Transaction\"). The acquisition of 100% of the shares of CML will bring Para's total indirect interest in the El Limon Mine to 61.2%.\nPursuant to the terms of the Transaction, Para will acquire Martin's interest in CML in exchange for 13,213,340 units (the \"Units\") of Para at a deemed price of $0.09 per Unit, each Unit being comprised of one common share of the Company (each a \"Share\") and one half of one transferable share purchase warrant (the \"Warrants\"), each whole Warrant entitling Martin to purchase an additional Share for a period of 18 months from the date of issuance at an exercise price of CAD$0.20 per Share. Para will purchase all of the shares owned by SAEF in CML in consideration of a) USD$250,000 cash at closing, and, b) an unsecured note in the amount of USD$170,000, payable six months from the closing date along with accrued interest at a rate of 7% per annum.\nThe Transaction is subject to several conditions precedent including the approval of the TSX Venture Exchange.\nGeoff Hampson, Chairman and CEO of Para Resources, commented:\n\"This is an important step for the Company's strategy to acquire small scale, cash flowing, producing properties. The previously announced upgrades at the El Limon mine are almost complete with production expected to re-commence in February 2016 at 50 TPD, ramping up to the planned 200 TPD by June 2016. The Company expects the El Limon Mine to produce positive cash flow at the initial planned 50 TPD and to steadily ...