Dore production at Gold Road over 730 ounces of gold month-to-date
Vancouver, British Columbia--(Newsfile Corp. - November 25, 2019) - With reference to today's press release, Para Resources Inc. (TSXV: PBR) (WKN: A14YF1) (OTC: PRSRF) (the "Company" or "Para") announces the termination of the contract mining agreement with Clark Construction and the transition to self-operation of the mining operations of the Gold Road Mine. The company would like to clarify that the decision to self-operation and hence, the termination of the contract mining agreement was based solely on management's strategy to evolve the operation away from using contractors.
Ian Harris, President of Para Resources, stated, "Month to date through the 19th of November, the project has produced over 730 ounces of gold in doré, proving out the efficiency of the full production cycle of the project. The team at Gold Road has gained significant knowledge of the mine geology, ideal mining methods and ideal equipment requirements. Significant rehabilitation, development, and the opening of several mining faces has established a sustainable production base. Therefore, it is a timely moment to convert the mine to self-operations. While the transition to self-operate will cause a delay in our production schedule, we expect a significant reduction in cost and improved management of cashflow."
The company will provide updated guidance for the mine by the end of the year.
Further to the Company's November 1, 2019 news release that noted the close of the fourth tranche of the private placement for gross proceeds of $1,275,500 on the issuance of 12,755,000 units, the Company had omitted a subscriber and wishes to correct the closing details from the fourth tranche. The total proceeds were $1,407,491.50 on the issuance of 14,074,915 units.
ABOUT PARA RESOURCES:
Para Resources Inc. ("Para") is a junior gold mining and exploration company. The Company owns two projects that both include existing or near-term mining and milling operations as well as highly prospective exploration properties. The company has acquired fully permitted mines and facilities with adjacent properties that have either been past producers or where there are an abundance of small artisanal miners, dramatically reducing the exploration risk. It is anticipated that the operating mines will be profitable in the short term, providing a return on capital, as a stand-alone entities and funding regional exploration to build out resources.
Para is unique in that the Insiders have invested more than US $30 million of their own capital and own approximately 70% of the company's equity.
Para's management team is seasoned and proven, having discovered, built, managed and sold several different mines over the last 40 years. The Company has two major projects: The Gold Road Mine in Arizona, USA and the El Limon Mine in Zaragoza, Colombia.
On behalf of the Board of Directors
"C. Geoffrey Hampson"
C. Geoffrey Hampson, Chairman, Chief Executive Officer and Director
For further information, please contact Andrea Laird, telephone: +1-604-259-0302
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/50077