Paramount Gold Nevada Corp. closed a private placement of secured convertible notes for gross proceeds of US$5.3 million, which it will use to advance its Grassy Mountain gold-silver project in Oregon.
The company said Sept. 25 that work at Grassy Mountain will focus on permit applications, progressing a feasibility study and drilling gold targets surrounding the project, including the Frost property.
The convertible notes will bear interest at a rate of 7.5% per annum, payable semiannually, and the principal amount of the convertible notes will be convertible at a price of US$1 per Paramount Gold share.
Subscribers include an investment fund affiliate of Sprott Inc., Seabridge Gold Inc. and Paramount Gold director Rudi Fronk.
In November 2018, the company signed a deal with Ely Gold Royalties Inc. subsidiary Nevada Select Royalty to acquire the gold-prospective Frost project near the Grassy Mountain project.
