| | Publié le 05 juin 2008 | Receive Shares for Non-Core Property Assets |
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June 5, 2008 |
Paragon Minerals to Receive Shares for Non-Core Property Assets
Paragon to receive 30% equity interest in new company and up to $1.0 million from secondary offering |
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 5, 2008) - Paragon Minerals Corporation (TSX VENTURE:PGR) is pleased to report that it has entered into an agreement to sell its 40% interest in the Victoria Lake base metal VMS property and South Golden Promise gold property, and its interest in the Golden Promise gold property (collectively, the "Properties") to Crosshair Exploration & Mining Ltd. ("Crosshair") (AMEX:CXZ)(TSX:CXX) and Gemini Metals Corp. ("Gemini"). Gemini is Crosshair's proposed spinout company to be formed to further explore its gold and base metal projects in Newfoundland. The Properties are non-core assets of Paragon, and the proposed transaction is intended to give liquidity to what would otherwise be illiquid assets.
Under the terms of the agreement, Paragon will receive approximately 16.2 million shares of Gemini and gross proceeds of up to $1,000,000 through a proposed secondary offering, forming part of Gemini's initial public offering. Paragon will retain a significant interest in Gemini (29.9%) on completion of Crosshair's proposed Plan of Arrangement, prospectus financing and secondary offering.
Michael Vande Guchte, President and CEO of Paragon said, "This agreement is beneficial to Paragon and its shareholders because it will maintain a meaningful interest in non-core properties, provide exposure to future assets of Gemini and add a significant cash injection to Paragon with no share dilution."
Crosshair has earned a 60% interest in both the Victoria Lake and South Golden Promise projects by having spent an aggregate of $1.75 million on exploration and making all property payments. At the Golden Promise project, Crosshair has the right to earn a 60% interest in the property from Paragon over a four year period expiring in May 2010 by spending $4.0 million in exploration ($1.4 million spent to date). The Golden Promise option agreement between Crosshair and Paragon will lapse upon closing of the proposed transaction.
Completion of the sale of the properties is subject to certain closing conditions including but not limited to finance pricing and acceptable share structure satisfactory to Paragon, Crosshair and Gemini as well as acceptance by the TSX Venture Exchange and the Toronto Stock Exchange. In approving the proposed transaction, the Board of Directors of Paragon has received third-party views and analysis from Research Capital Corporation.
Paragon Minerals Corporation is a Canadian-based mineral exploration company listed on the TSX Venture Exchange. The company is focused on gold and base metal exploration in the Province of Newfoundland and Labrador.
PARAGON MINERALS CORPORATION
Michael J. Vande Guchte, President & CEO
Forward-looking statements - This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Company expects to occur, are forward looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this document include statements regarding agreement closing conditions, financings and various regulatory approvals. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration success, continued availability of capital and financing, inability to obtain required regulatory or governmental approvals and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required under securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. These statements are based on a number of assumptions, including, among others, assumptions regarding general business and economic conditions, the timing of the receipt of regulatory and governmental approvals for the transactions described herein, the ability of Paragon and other relevant parties to satisfy stock exchange and other regulatory requirements in a timely manner, the availability of financing for Paragon's proposed transactions and exploration and development programs on reasonable terms and the ability of third-party service providers to deliver services in a timely manner. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause results to differ materially.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. | |
CONTACT INFORMATION:
Paragon Minerals Corporation Bill Cavalluzzo VP Investor Relations Toll Free: 1-877-533-6353 Website: www.paragonminerals.com
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INDUSTRY: Manufacturing and Production - Mining and Metals | |
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Paragon Minerals Corporation
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EXPLORATEUR |
CODE : PGR.V |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Paragon est une société d’exploration minière d'or et de cuivre basée au Canada. Paragon détient divers projets d'exploration au Canada. Ses principaux projets en exploration sont SOUTH GOLDEN PROMISE, GOLD STAR PROJECT, SOUTH TALLY POND, GOLDEN PROMISE, VICTORIA LAKE, HUXTER LANE, LONG POND JV, JONATHANS POND et GLENWOOD PROJECT au Canada. Paragon est cotée au Canada. Sa capitalisation boursière aujourd'hui est 3,2 millions CA$ (3,2 millions US$, 2,5 millions €). La valeur de son action a atteint son plus haut niveau récent le 31 décembre 2007 à 1,65 CA$, et son plus bas niveau récent le 24 décembre 2008 à 0,03 CA$. Paragon possède 52 999 000 actions en circulation. |
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