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Canada : Paramount gold and silver corp sells its reese river gold project in Nevada to Valor gold for $7.6 million in shares.

Paramount Gold and Silver Corp. ("Paramount") announced today that it has closed the sale of its Reese River Gold Project to Valor Gold Corp. for consideration of 6 million restricted shares of Valor common stock and cash of $21,000. Based on the closing price of VGLD on November 1, 2012, the 6 million Valor common shares would be worth $7.6 million.

Valor is a junior exploration company and Pershing Gold Corporation is a significant shareholder. Paramount now holds 8.3% of the issued stock of Valor and has the right to appoint one director to the board of Valor within 90 days.

The Reese River Gold Project ( Reese ) is an early stage exploration prospect consisting of 148 unpatented lode mining claims totaling 2,960 acres which are situated along the highly-productive Battle Mountain Mineral trend in Nevada and are subject to a 2% NSR in favor of Royal Gold. Reese was among the assets of X-Cal Resources ( X-Cal ) which Paramount acquired in 2010 in a transaction valued at US$31.8 million. Paramount s objective in this transaction was to acquire X-Cal s principal asset---the advanced-stage Sleeper Gold Project---where Paramount has successfully grown resources and completed a positive Preliminary Economic Assessment (PEA, see news release).

Paramount s CEO Christopher Crupi commented: Our focus is on our advanced-stage assets, the Sleeper Gold Project in Nevada and the San Miguel Project in northern Mexico. In our view, Valor has an excellent district-scale strategy of unlocking value in the Battle Mountain Trend and the ability to execute. By selling them our non-core Reese River property for shares, Paramount gains a participation in this exciting opportunity.

Mr. Crupi also noted that Paramount is considering strategic options for its two remaining non-core Nevada gold assets, namely Mill Creek in Lander County and West Rochester (Spring Valley) in Pershing County (see map), both of which were also acquired in the X-Cal transaction. These are well-located assets which could command good value in the current market.

2012 Al Bawaba (Albawaba.com)

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Publication:Mena Report
Geographic Code:1U8NV
Date:Nov 6, 2012
Words:344
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