Paramount Gold Enters Into A Royalty Agreement With Franco-Nevada Corporation
April 11, 2019 at 16:05 PM EDT
WINNEMUCCA, Nev., April 11, 2019 (GLOBE NEWSWIRE) -- Paramount Gold Nevada Corp. (NYSE American: PZG) ("Paramount” or “the Company”) announced today that it has entered into a royalty agreement with Franco-Nevada Corporation (“Franco”) (NYSE: FNV) (TSX: FNV) to sell a 2% Net Smelter Return Royalty (“NSR”) on its Sleeper Gold property (“Sleeper”) in Northern Nevada for cash proceeds of US$2 million, subject to customary closing conditions.
Proceeds from the royalty sale will be used to continue the permitting process and feasibility level work for Paramount’s proposed Grassy Mountain Project (“Grassy Mountain”), an advanced-stage high-grade gold project, and to explore high priority targets which could add to Grassy Mountain’s existing mineralized material.
John Seaberg, Paramount’s Executive Chairman, commented: “We are excited to execute a transaction with Franco, an industry-leading, gold-focused, streaming and royalty company. Franco’s purchase of a NSR at Sleeper provides further validation of the assets’ quality and its potential. We are also pleased to have strengthened our balance sheet in a non-dilutive manner to our shareholders. As we advance both our Grassy Mountain and Sleeper projects, we believe this transaction will mark the beginning of an important long-term, strategic partnership for Paramount.”
Paul Brink, President and COO of Franco, stated: “We are pleased to support Paramount as it advances its projects. The Sleeper Gold property has tremendous potential and option value due to its large resource base and land package in a proven, gold-rich district.”
About Paramount Gold Nevada Corp.
Paramount owns 100% of the Grassy Mountain Gold Project which consists of approximately 4,450 hectares located on private and BLM land in Malheur County, Oregon. The Grassy Mountain Gold Project contains a gold-silver deposit (100% located on private land) for which results of a positive PFS have been released and key permitting milestones accomplished (see press release dated May 24, 2018). Additionally, Paramount owns a 100% interest in the Sleeper Gold Project located in Northern Nevada. The Sleeper Gold Project, which includes the former producing Sleeper mine, totals 2,322 unpatented mining claims (approximately 60 square miles or 15,500 hectares).
Safe Harbor for Forward-Looking Statements
Except as required by applicable law, Paramount disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this document.
Paramount Gold Nevada Corp.