Paramount Gold and Silver Corp. Expands Its San Miguel Project By 17,200 Hectares
CHIHUAHUA, MEXICO–(Marketwire – June 20, 2008) – Paramount Gold and Silver Corp. (TSX:PZG)(AMEX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) has signed an agreement with Garibaldi Resources Inc. (Garibaldi) (TSX VENTURE:GGI) to form a joint venture agreement, and acquire an interest in 17,208 hectares of property. The new agreement will cover approximately 6,657 hectares previously optioned in 2006 and adds several new parcels totalling 10,543 hectares under the umbrella of a joint venture.
The land package in the Guazapares mining district, Mexico, will consist of several parcels as outlined in the cross-hatched areas on the current Paramount Land Status map, available on the Marketwire Website at the following address: http://media3.marketwire.com/docs/ PZG_June2008.jpg.
As part of the transaction, Garibaldi will provide Paramount with its geologic data, including the results of its recent regional hyperspectral airborne survey. Paramount will be the exploration manager under the joint venture.
Christopher Crupi, CA, Chief Executive Officer of Paramount said, “This agreement provides Paramount a strategic piece of significant ground surrounding our flagship San Miguel Project. Our contiguous land position in the region now stands at over 100,000 hectares. We believe that the Guazapares mining district hosts a world class precious metals deposit and this agreement marks one further step toward securing and fully developing the potential of this region.”
Paramount has made an initial payment to Garibaldi in the amount of $100,000. Paramount will earn a 50% interest by making an additional payment of $400,000, issuing 600,000 restricted common shares, and spending $700,000 on exploration. To increase its interest to 70%, Paramount must spend an additional $1,000,000 in exploration expenditures within 30 months, make an additional payment of $500,000, and issue an additional 400,000 restricted common shares.
Upon earning a 70% joint venture interest, Paramount may increase its interest to 80% within 30 months of the signing of the Agreement, exclusively and limited to the approximately 6,657 hectares referred to in the October 6, 2006, agreement.
Paramount Gold (www.paramountgold.com) is a precious metals mining exploration company presently in the early stages of an extensive exploration program at their San Miguel project in the Guazapares Mining District, part of the Sierra Madre Occidental gold- silver belt of Mexico. Paramount Gold and Silver Corp. is the Manager of the San Miguel project, which is a joint venture with Tara Gold Resources Corp. (TRGD.PK) (30%). Paramount recently signed a Strategic Alliance with Mexoro Minerals Ltd. (MXOM.OB).
“Safe-Harbor” Statement: This press release contains forward- looking information within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company may not be realized. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control, and that actual results may differ materially.
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