WINNEMUCCA, NEVADA--(Marketwire - March 15, 2013) - Paramount Gold and Silver Corp. (NYSE MKT:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) ("Paramount") announced today that Its largest shareholder, FCMI, has exercised its remaining 7.7 million share purchase warrants (the "Warrants") at the exercise price of C$1.05 each for total proceeds to Paramount of C$8 million. This exercise brings FCMI's holdings in Paramount to 24.4 million common shares, representing approximately 15.7% of total shares outstanding.
The Warrants were issued to FCMI as part of the consideration for a C$9,000,000 non-brokered private placement of common stock of Paramount by FCMI in March 2009. Currently, Paramount has no issued or outstanding warrants.
Paramount CEO Christopher Crupi commented, "We are delighted to have the continuing support of FCMI as we move forward with our two key assets--the San Miguel project in northern Mexico and the Sleeper project in Nevada. This warrant exercise enables us to complete our planned 2013 programs at both projects without the need for additional financing. We look forward to adding substantial value to these assets this year."
FCMI is a private corporation controlled by Albert D. Friedberg and members of his immediate family.
About Paramount Gold
Paramount is a U.S.-based exploration and development company with multi-million ounce advanced stage precious metals projects in Nevada (Sleeper) and northern Mexico (San Miguel). Fully funded exploration and engineering programs now in progress at these two core projects are expected to generate substantial additional value for our shareholders.
The Sleeper Gold Project is located off a main highway about 25 miles from the town of Winnemucca. In 2010, Paramount acquired a 100% interest in the project including the original Sleeper high-grade open pit mine operated by Amax Gold from 1986 to 1996 as well as staked and purchased lands now totaling 2,570 claims and covering about 47,500 acres stretching south down trend to Newmont's Sandman project. This acquisition is consistent with the Company's strategy of district-scale exploration near infrastructure in established mining camps. A Preliminary Economic Assessment (PEA) was completed for Sleeper and announced on July 30, 2012.
The San Miguel Project consists of over 142,000 hectares (over 353,000 acres) in the Palmarejo District of northwest Mexico, making Paramount the largest claim holder in this rapidly growing precious metals mining camp. The San Miguel Project is ideally situated near established, low cost production where the infrastructure already exists for early, cost-effective exploitation. A PEA for San Miguel was completed and announced on February 28, 2013.
Safe Harbor for Forward-Looking Statements
This release and related documents may include "forward-looking statements" including, but not limited to: statements related to future work at the Sleeper Gold Project and the San Miguel project, the expected results of this work; and the sufficiency of funds available to complete this work. Forward-looking statements are statements that are not historical fact and are subject to a variety of risks and uncertainties which could cause actual events to differ materially from those reflected in the forward-looking statements including fluctuations in the price of gold, inability to complete drill programs on time and on budget, and future financing ability. Paramount's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Words such as "believes" "plans" "anticipates" "expects" "estimates" and similar expressions should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to: uncertainties involving interpretation of drilling results, environmental matters, lack of ability to obtain required permitting, equipment breakdown or disruptions, and the other factors described in Paramount's Annual Report on Form 10-K for the year ended June 30, 2012 and its most recent quarterly reports filed with the SEC. 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.