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TORONTO, CANADA--(Marketwire - March 5, 2009) - Paramount Gold and
Silver Corp. (TSX:PZG)(NYSE-A:PZG)(AMEX:PZG)(FRANKFURT:P6G) is pleased to announce an
agreement in principal to make a non-brokered private placement of
C$9,000,000 through the sale of 12,000,000 restricted units at 75 cents
per unit. This placement is priced at a premium to the 20 day volume
weighted average price on the TSX and is subject to definitive
documentation and regulatory approvals. Each unit is comprised of one
common share and one share purchase warrant exercisable at a price of
$1.05 per share for a period of four years. The share purchase warrants
cannot be exercised until after six months and one day from issuance.
The subscriber is FCMI Financial Corporation, a private corporation
based in Toronto,
controlled by Albert D. Friedberg and members of his family.
Rudi Fronk, President and CEO of Seabridge Gold Inc. (TSX:SEA) (NYSE.A:SA) and Eliseo Gonzalez-Urien,
Director of Seabridge Gold Inc., will join
the Board of Directors of Paramount Gold and Silver Corp. after
closing. Rudi Fronk has over 25 years
experience in the gold business, primarily as a senior officer and
director of publicly traded companies. Since 1999, Mr. Fronk has served as President and CEO of Seabridge Gold. Mr. Fronk
previously held senior management positions with Greenstone Resources,
Columbia Resources, Behre Dolbear
& Company, Riverside Associates, Phibro-Salomon,
Amax, and DRX. Mr. Fronk is a graduate of Columbia University and holds a Bachelor
of Science in Mining Engineering and a Master of Science in Mineral
Economics.
Mr. Gonzalez-Urien is one of the most highly
regarded exploration geologists in the mining industry. From 1989
through 2001 Mr. Gonzalez-Urien held various
executive positions with Placer Dome Inc. including Senior Vice
President of the parent company and President of Placer Dome
Exploration Inc. During this period he was charged with ultimate
responsibility for Placer Dome?s
worldwide exploration activities. Prior to Placer Dome, Mr. Gonzalez-Urien held senior positions with BHP-Utah Inc. and Noranda. He holds a degree in Geology from the
University of Santiago, Chile, followed by post graduate studies in
Geology at the University of California, Berkley.
The proceeds of the financing are to fund exploration in Mexico to advance Paramount's San Miguel project and
the surrounding 140,000 hectares of mining concessions.
Together with its resources on hand this financing provides funding for
the next 30 months of business expenditures.
"This financing with FCMI will provide us with the strategic
financial partner needed to realize the potential of our large San
Miguel project including resource definition, economic evaluation and
new discoveries. Our experienced new directors, Rudi Fronk and Eliseo
Gonzalez-Urien, will help to drive a highly
directed value enhancement process on behalf of all of our
shareholders", stated Christopher Crupi
CEO of Paramount Gold and Silver Corp.
Rudi Fronk, CEO of Seabridge
Gold Inc. commented, "We are encouraged by the discoveries made by
Paramount at the San Miguel project in Mexico
which, we believe, represent an unusually good opportunity to create
significant shareholder value in the current market environment and the
potential for one or more significant gold discoveries."
The securities in the placement will not be registered under the U.S.
Securities Act of 1933 and will not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements of that Act. This press release does not constitute an
offer to subscribe for the securities in the United States.
Statements relating to the estimated or expected future production and
operating results and costs and financial condition of Paramount Gold
and Silver Corp., planned work at the Corporation's projects and the
expected results of such work are forward-looking statements within the
meaning of the United States Private Securities Litigation Reform Act
of 1995. Forward-looking statements are statements that are not
historical facts and are generally, but not always, identified by words
such as the following: expects, plans, anticipates, believes, intends,
estimates, projects, assumes, potential and similar expressions. Forward-looking
statements also include reference to events or conditions that will,
would, may, could or should occur. Information concerning exploration
results and mineral reserve and resource estimates may also be deemed
to be forward-looking statements, as it constitutes a prediction of
what might be found to be present when and if a project is actually
developed. These forward-looking statements are necessarily based upon
a number of estimates and assumptions that, while considered reasonable
at the time they are made, are inherently subject to a variety of risks
and uncertainties which could cause actual events or results to differ
materially from those reflected in the forward-looking statements,
including, without limitation: uncertainties related to raising
sufficient financing to fund the planned work in a timely manner and on
acceptable terms; changes in planned work resulting from logistical,
technical or other factors; the possibility that results of work will
not fulfill projections/expectations and
realize the perceived potential of the Corporation's projects;
uncertainties involved in the interpretation of drilling results and
other tests and the estimation of gold reserves and resources; risk of
accidents, equipment breakdowns and labour disputes or other
unanticipated difficulties or interruptions; the possibility of
environmental issues at the Corporation's projects; the possibility of
cost overruns or unanticipated expenses in work programs; the need to
obtain permits and comply with environmental laws and regulations and
other government requirements; fluctuations in the price of gold and
other risks and uncertainties, including those described in the Annual
Report Form 10K filed with the U.S. Securities and Exchange Commission
on EDGAR (available at www.sec.gov/edgar.shtml).
Forward-looking statements are based on the beliefs, estimates and
opinions of the Corporation's management or its independent
professional consultants on the date the statements are made.
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