Paramount Gold and Silver Corp.
AMEX : PZG
FRANKFURT : WKN:A0HGK
TSX : PZG

Paramount Gold and Silver Corp.

February 17, 2009 03:00 ET

Paramount Gold and Silver increases its San Miguel Project adding 54,000 hectares through acquisition in the Guazapares Mining District in Mexico

MUNICH, GERMANY--(Marketwire - Feb. 17, 2009) - Paramount Gold and Silver Corp. (TSX:PZG)(NYSE-A:PZG)(AMEX:PZG)(FRANKFURT:P6G) has entered into agreements to acquire an additional 54,000 hectares of mining concessions adjacent to its San Miguel project in Chihuahua Mexico. Paramount has entered two concurrent transactions including the acquisition of all of the shares of Magnetic Resources Inc., a private Canadian corporation and the purchase of the Temoris options owned by Garibaldi Resources Corp. (TSX VENTURE:GGI) for cash and share consideration.

"We are excited to have achieved a significant objective in the business plan of Paramount Gold and Silver Corp. which is the acquisition of 100% interest in the massive Temoris mining concessions," stated Christopher Crupi, CEO of Paramount Gold and Silver Corp.

According to Larry Segerstrom, C.O.O. of Paramount, "The targets found so far on the Temoris concession represent new epithermal vein systems and are located along the southeast extensions of the fault structures that host Coeur's Palmarejo and Guadalupe, and Azteca's Guerra al Tirano projects. The targets exhibit multiple episodes of silicification, brecciation, alteration and gold-silver values and ratios typical of the upper levels of gold-silver mineralized systems in the district. Sampling by Garibaldi of some of the more obvious targets, like Vetas Azules and La Tinaja, returned gold values ranging from several hundred ppb gold to 5.3 grams per ton and silver values ranging from 337 to 4,770 grams per ton."

Paramount has made an initial cash payment of $400,000 to Garibaldi, and will issue 6,000,000 common shares on closing with fixed release dates to acquire all of its interest in the option agreements. Paramount has also entered into an agreement to acquire all of the shares of Magnetic Resources Inc. and its Mexican subsidiary by way of stock consideration of 1,350,000 common shares of Paramount thereby extinguishing all future option and royalty payments. The transactions are subject to regulatory approval.

The new position map (available at http://paramountgold.com/projects/images/ParamountLandStatus.jpg) outlines the 140,000 hectares now controlled by Paramount and dubbed the Guazapares Mining District. Of particular note, are the numerous new target and prospective areas as well as the regional fault systems. Paramount now counts three projects in the district including the San Miguel Project, the Andrea Project and the new Temoris Project.

As part of the acquisition of Magnetic Resources Inc., Paramount also acquires title to the underlying concessions forming the Morelos gold and silver project currently optioned to Garibaldi. The Morelos property covers a historic mining area about 25 kilometers southeast of Goldcorp's El Sauzal Mine and 30 kilometers south of Mag Silver's Batopilas project.

Finally, Paramount also acquires the 2% NSR held by Magnetic Resources over Garibaldi's Iris project near the Pinos Altos and Ocampo mines (see website for location map).

Contact Information

  • Paramount Gold and Silver Corp.
    Christopher Crupi
    CEO
    613-226-9881
    or
    Paramount Gold and Silver Corp.
    Chris Halkai
    Investor Relations
    613-226-9881