Paramount Gold Nevada to acquire Calico Resources

Paramount Gold Nevada to acquire Calico Resources

Calico Resources (TSXV:CKB) announced yesterday that it is being acquired by Paramount Gold Nevada Corp (NYSE/TSX:PZG), a US based precious metals exploration company. The US$11.5 million deal will give Paramount Gold Nevada the Grassy Mountain gold-silver project. According to a 2015 economic assessment, the anticipated mine will manufacture an average 53,000 ounces of gold per year and 82,000 ounces of silver.

The mine is located in Malheur County, made up of 9,300 acres and Calico owns the mineral rights to the site.

Paul Parisotto, Calico’s president and CEO said he believes this deal will unlock a large amount of value for the Grassy Mountain project and benefit shareholders.

“Paramount has a strong cash position of approximately $7.9 million (as at December 31, 2015), along with experienced technical and operational leadership able to take the project forward to production and the financial resources needed to complete the permitting process and a feasibility study, work which our Calico team has so ably advanced to this point,” he said.

Paramount Gold Nevada’s front runner is the Sleeper Gold Project, a previous open pit gold mine in the state of Nevada. The project, controlled by AMAX Gold Inc. produced 1.66 million ounces of gold and 2.3 million ounces of silver from 1986 to 1996.