March 4, 2016 – Vancouver, British Columbia. Para Resources Inc. (the “Company” or “Para”) (TSXV – “PBR”) (WKN – “A14YF1”) is pleased to announce a non-brokered private placement to raise gross proceeds of up to $400,000 through the issuance of up to 3,333,333 Units at a price of $0.12 per Unit (the “Private Placement”).
Each “Unit” will be comprised of one common share of the Company and one half of a common share purchase warrant. Each whole common share purchase warrant (a” Warrant“) will entitle the holder to purchase one additional common share for a period of 18 months from closing at a price of $0.18 per share. The securities issued under the Private Placement will be subject to a four month hold period from the date of closing. In circumstances where, any time after the expiry of the four-month hold period, the Company’s stock trades at $0.30 or greater for 5 consecutive days, the Company may give notice via a news release accelerating the expiry date of the exercise period of the Warrants to that date which is 30 days from the date of such notice.
In connection with the Private Placement, the Company may pay finder’s fees in accordance with the policies of the TSX Venture Exchange. Completion of the Private Placement is subject to receipt of applicable regulatory approvals, including approval of the TSX Venture Exchange.
Proceeds of the Private Placement will be used to expand the production capacity at the El Limon mine in Colombia and for general working capital purposes.
The Private Placement will be conducted in reliance upon certain prospectus exemptions, including the exemption allowing issuers to raise capital by distributing securities to existing security holders (the “Existing Shareholder Exemption”). This offer is available to all shareholders who held our common shares on March 4, 2016. The Private Placement is not subject to any minimum subscription level. If the aggregate value of subscriptions under the Private Placement exceeds $400,000, subscriptions will be accepted in whole or in part at the discretion of the Company.
Para also announces, subject to regulatory approval, the grant of a total of 1,025,000 stock options to directors, officers and consultants of the Company to purchase common shares of the Company in accordance with its stock option plan. All of the options vest immediately, are issued at an exercise price of nine cents per common share and expire five years from the date of issuance.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
ABOUT PARA RESOURCES:
Para Resources is an exploration stage gold mining and toll milling company. Para is earning an interest in the El Limon project, in Colombia, with toll milling opportunities, and exploration and development upside. In addition the Company is gearing up to commence trial mining operations at its Tucuma Project and in particular on the Angelim prospect in Para State, Brazil. Para Resources will continue to take advantage of current market conditions to acquire and develop additional highly economic, near-term production assets that have strong exploration and development upside.
ON BEHALF OF THE BOARD OF DIRECTORS
“C. Geoffrey Hampson”
C. Geoffrey Hampson, Chief Executive Officer and Director
For further information, please contact Andrea Laird: Telephone: 604-259-0302
Neither TSX Venture Exchange nor its regulation service provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements, analysis and other information contained in this press release about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The company does not undertake any obligation to update forward-looking statements even if circumstances or management’s estimates or opinions should change except as required by applicable laws. Investors should not place undue reliance on forward-looking statements.