Business
Para Resources Updates on El Limon Production
Lake Forest Development and Conex Services to Exercise Warrants Early to Finance OTU Purchas...
About this update from Soma Gold Corp.
[{"type":"text","content":"Para Resources Updates on El Limon ProductionLake Forest Development and Conex Services to Exercise Warrants Early to Finance OTU Purchase\nVANCOUVER, BC / ACCESSWIRE / May 24, 2016 / Para Resources Inc. (the \"Company\" or \"Para\") (TSXV: PBR) (WKN: A14YF1) is pleased to announce that its high-grade gold mine and mill at El Limon in Colombia has now been operating for two weeks and is producing gold. The senior management team and major shareholders attended the mine site near Zaragosa last week to witness operations. All systems were operational and the mine is processing material stockpiled during the re-construction phase. There is approximately 4,500 tons of mineralized rock from the underground mine on site waiting to be processed. Underground mining operations continue.\nDuring this phase of the ramp up schedule, the mill has been operating on one 12-hour shift. Second shift personnel are on site and undergoing training. The ramp up schedule anticipates moving to 24 hours per day production schedule in June.\nIn addition to the ongoing mining and processing at El Limon, the Company has begun to implement a geological survey program to assist in developing a comprehensive mining plan, assess and quantify the extent of the underground potential and to begin to map and survey the surrounding property at El Limon and the adjacent OTU property to be acquired in the impending purchase of the mineral rights from OTU Gold. This program will improve the efficiency of underground mining operations and develop additional sources of mineralized material to feed the 200 TPD mill.\nThe Company also announces that the due diligence on the purchase of the approximately 17,000 Ha of mineral rights from OTU Gold has been completed and the parties are proceeding to a definitive agreement. The purchase of the OTU mineral rights is expected to close on June 28th 2016.\nThe $1 million USD purchase of the OTU mineral rights require a cash payment of $500,000 USD at closing. In order to be able to make that payment and after seeing the progress at the El Limon mine site last week, Conex Services Inc (\"Conex\") and Lake Forest Development Corp. (\"Lake Forest\"), both major shareholders of the Company and holders of approximately 7.3 million Share Purchase Warrants (Lake Forest: 5,979,096 and Conex: 1,285,112) which expire on August 22, 2016, h...