Paramount Gold Nevada Corp (NYSE MKT: PZG) is to raise just over US$3.6 mln via the issue of 2.09 mln units at US$1.75 per unit.
Each unit consists of one share of common stock and one warrant to purchase one-half of a share of common stock. Each warrant will have a two-year term and will be exercisable at the following exercise prices: in the first year at $2.00 per share and in the second year at $2.25 per share.
FCMI Parent Co., Paramount’s largest stockholder, has come into the deal and increased its ownership 18.84%, while Seabridge Gold Inc. (NYSE:SA)(TSX:SEA), Paramount’s second largest stockholder, has committed to participating in the offering, and will maintain its current pro-rata ownership.
Proceeds from the Transaction will be used primarily to complete the pre-feasibility study at the Sleeper gold project in Northern Nevada.
Story by ProactiveInvestors