WINNEMUCCA — Paramount Gold Nevada Corp. announced Thursday that it has entered into a royalty agreement with Franco-Nevada Corporation to sell a 2% Net Smelter Return Royalty on its Sleeper Gold property in Northern Nevada for cash proceeds of $2 million, subject to customary closing conditions.
Proceeds from the royalty sale will be used to continue the permitting process and feasibility level work for Paramount’s proposed Grassy Mountain Project an advanced-stage high-grade gold project, and to explore high priority targets which could add to Grassy Mountain’s existing mineralized material.
The Sleeper Gold Project is a former high-grade open pit gold producer about 25 miles northwest of Winnemucca. The Sleeper mine was operated by AMAX Gold Inc. from 1986 until 1996, producing 1.66 million ounces of gold and 2.3 million ounces of silver. Paramount has assembled a district-scale project which it says has significant unexplored gold potential.
John Seaberg, Paramount’s executive chairman, said, “We are excited to execute a transaction with Franco, an industry-leading, gold-focused, streaming and royalty company. Franco’s purchase of a NSR at Sleeper provides further validation of the assets’ quality and its potential. We are also pleased to have strengthened our balance sheet in a non-dilutive manner to our shareholders. As we advance both our Grassy Mountain and Sleeper projects, we believe this transaction will mark the beginning of an important long-term, strategic partnership for Paramount.”
Paul Brink, president and COO of Franco, said, “We are pleased to support Paramount as it advances its projects. The Sleeper Gold property has tremendous potential and option value due to its large resource base and land package in a proven, gold-rich district.”