Updated: May 7
Para Resources Also Announces Final Close of Over-Subscribed Private Placement
November 1, 2019, Vancouver, B. C. — Para Resources Inc. (the “Company” or “Para”) is pleased to announce that, in anticipation of the October 23rd start-up of the mill, the Gold Road mine shifted from focusing on extending and deepening the main accesses of the mine to stope development in 6 faces in the mine. During the month, the mine steadily increased the daily haulage of mineralized rock to surface, resulting in a total for the month of 3,723 mt, containing 711 oz Au at an average grade of 5.9 g-Au/mt.
Since its startup, the Gold Road Mill has run continuously for nine days processing 2,825 mt of mineralized rock at an average feed grade of 4.7 g-Au/mt. Recovery has averaged 90% for 387 Au oz of production. Availability of the plant has been 86%. The surface stockpile at the end of October contained 4,013 mt containing 541 oz Au at an average grade of 4.2 g-Au/mt. The first pour is planned for November 6.
Ian Harris, President of Para Resources stated, “We are impressed with how quickly the plant has balanced, with availability and recovery on target after only one week. The mine continues to add additional mining faces and is progressing towards higher-grade zones. As a result, more production will come from stope mining instead of the development on the vein, reducing dilution and further improving the head grade. We have secured two Alimaks with the first unit already at the site. The Installation of both will be completed in December. We anticipate grade to continue to improve and daily production to increase, including hitting a mining rate of 500 tpd during December.”
The Company also announces that it has closed a fourth tranche of its non-brokered private placement (the “Private Placement”) initially announced on September 16, 2019. The fourth tranche resulted in gross proceeds of $1,275,500 on the issuance of 12,755,000 units.
Under all four tranches, the Company has issued 108,203,706 common shares and 108,203,706 share purchase warrants (each a “Warrant”). Each Warrant entitles the holder to acquire one common share of the Company for a period of 2 years at a price of C$0.15, subject to an accelerated expiry if the closing trading price of the Company’s shares is greater than C$0.30 per share for a period of 10 consecutive trading days (the “Acceleration Event”). The Company will give notice to the holders of the Acceleration Event and the Warrants will expire 30 days thereafter.
Finders’ fees in cash and 264,950 non-transferable finder’s warrants (having the same terms as the private placement warrants) were issued to registrants in connection with this fourth closing. All securities issued in the Private Placement are subject to a hold period of 4 months from closing.
The proceeds of the Private Placement are expected to be used for general corporate and working capital purposes and work related to the Company’s projects.
Geoff Hampson, Para’s CEO states, “It has been gratifying to see the interest in the work that Para has accomplished over the last year. There have been several challenges which we have overcome and are now poised to quickly get to full production at Gold Road over the coming months. Investors have recognized the persistence and knowledge of the management team and as such, we have over-subscribed the Private Placement and had to turn down some last-minute subscriptions.”
A copy of this news release can also be found on our SEDAR profile.