Paramount Gold And Silver Get $9 Million In Financing From FMCI Financial Corp.

Paramount Gold and Silver Corp. has gotten a committment from FCMI Financial Corp. to purchase 12 million units at 75 cents per unit. Each unit will contain one common share and one purchase warrant, with exercise price of $1.05. The warrants will have a life of four years, but cannot be exercised until six months after they're issued. This deal will potentially lead to a Change of Control, as FCMI will hold 25.36% of the company if all warrants are exercised, but Paramount is going to invoke the Financial Hardship exemption in order to avoid the need to secure shareholder approval. NYSE Alternext approval for the private placement is pending. Paramount plans to use the proceeds to advance its San Miguel project and explore surrounding claims. The news release contains further details, and also notes that Paramount faces a TSX delisting review that the company believes is routine.

This item was webbed last night. Prior to it, Paramount closed down 6 cents at $1.02.

The company's Google Finance web page is here.

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