Vancouver, British Columbia--(Newsfile Corp. - May 6, 2020) - Para Resources Inc. (TSXV: PBR) (WKN: A14YF1) (OTC: PRSRF) (the "Company" or "Para") announces that the Definitive Agreements ("Agreement") executed on March 25th, 2020, with Mineros, S.A. ("Mineros"), the Seller of certain shares ("Shares") of Operadora Minera S.A.S. ("Operadora"), a simplified stock corporation (sociedad por acciones simplificada), organized and existing under the Laws of Colombia and the Mining Title of Nechi, the portion of the Mining Title of R57011 and certain other Assets (the "Assets") has been amended as follows:
- Mineros shall transfer to Para 100% of the Shares and the Assets to the Company and the Company shall pay to Mineros, US $1 million, at Closing, and a deferred payment of US $4.5 million within ninety (90) days after Closing.
- Mineros will be released from the obligation to fulfill the Post Closing Condition and therefore from all the obligations derived from it.
Geoff Hampson, Para's Executive Chairman, states, "This amendment is reflective of the change in the access strategy to the Balvina/Cordero deposit, the construction of which will commence immediately after Closing. Para will now own 100% of the shares of Operadora at Closing."
The Company's name change to "Soma Gold Corp." and share consolidation on a 10:1 basis will be effective on May 8, 2020. Registered shareholders will receive letters of transmittal in order to exchange their old shares for new shares. Shareholders holding their shares through brokerage accounts will have their share positions updated automatically (with effect as of May 8, 2020) in the days following the effective date. Following the share consolidation approximately 30,393,365 shares will be outstanding. The new CUSIP/ISIN numbers for the Soma Gold Corp. shares are as follows: 83445W108 / CA83445W1086.
Para is also pleased to announce that Javier Cordova has been appointed to the board of directors of the Company effective May 1, 2020. Please refer to the Company's news release of February 19, 2020 announcing Mr. Cordova's appointment as President & CEO of the Company for more information about Mr. Cordova.
ABOUT PARA RESOURCES:
Para Resources Inc. ("Para") is a junior gold mining and exploration company. The Company owns the El Limon project that includes 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 is an abundance of small-scale 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 stand-alone entities and funding regional exploration to expand 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.
On behalf of the Board of Directors
Javier Cordova, Chief Executive Officer, President 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.
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