OTTAWA, ONTARIO--(Marketwire
- Oct. 5, 2009) - PARAMOUNT GOLD AND SILVER CORP. (TSX:PZG)(NYSE Amex:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) (the
"Company" or "Paramount"), a precious metals
exploration company, is pleased to announce that it intends to offer 16
million shares of its common stock pursuant to its shelf registration
statement filed with the U.S. Securities and Exchange Commission (the
"SEC") and a shelf prospectus filed with the securities regulatory
authority in Ontario, Canada.
Paramount
intends to use the net proceeds of the offering for exploration of its
San Miguel project, for newly acquired projects in the Palmarejo mining district, for the acquisition and
exploration of new precious metals projects, if any, and for general
corporate purposes.
FCMI Financial Corporation, a Toronto
based corporation controlled by Albert D. Friedberg and the Company's
largest stockholder, intends to purchase shares of common stock in the
offering.
The Company intends to grant the underwriters a 30-day option to
purchase up to 2.4 million additional shares of common stock to cover
over-allotments, if any.
Dahlman Rose & Company, LLC is acting as
book-running manager for the offering and Blackmont
Capital Inc. is acting as joint lead-manager for the offering.
The offering is being made by way of a registration statement, which
has been declared effective by the SEC, and a base shelf prospectus and
a prospectus supplement, each of which has been filed with the SEC and
the securities regulatory authority for the Province of Ontario,
Canada. A copy of the preliminary prospectus supplement relating to the
offering may be obtained by accessing the SEC website at www.sec.gov, by accessing the website maintained by the Canadian securities
regulatory authorities at www.sedar.com, or by contacting the underwriters, in the United States, c/o Dahlman Rose & Company, LLC, Attn: Prospectus
Dept., 142 West 57th Street - 18th Floor, New York, NY 10019, phone:
212-702-4521, fax: 212-920-2945, email: ecm@dahlmanrose.com, and in Canada, c/o Blackmont Capital
Inc., Attn: Equity Capital Markets, 900 - 181 Bay Street, Toronto,
Ontario, M5J 2T3, phone: 416-864-2082, fax: 416-864-9151, email: ecm@blackmont.com.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there
be any sale of these securities in any state or jurisdiction in which
the offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction. The securities being offered have not been approved or
disapproved by any regulatory authority, nor has any such authority
passed upon the accuracy or adequacy of the prospectus supplement, the
base prospectus or the Company's shelf registration statement.
Cautionary "Safe Harbor" Statement
under Applicable Securities Laws
With the exception of historical matters, the matters discussed in this
press release include forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from
projections or estimates contained herein. Such forward-looking
statements include statements regarding future sales of common stock
and the use of proceeds from such sales. Factors that could cause
actual results to differ materially from projections or estimates
include, among others, precious metals prices, economic and market
conditions, as well as other factors described in our Annual Report on
Form 10-K for the fiscal year ended June 30, 2009 and our other filings
with the SEC. Most of these factors are beyond the Company's ability to
predict or control. The Company disclaims any obligation to update any
forward-looking statement made herein, except as required by law. Readers
are cautioned not to put undue reliance on forward-looking statements.
ABOUT PARAMOUNT GOLD AND SILVER CORP.
Paramount Gold and Silver Corp. is a precious metals exploration
company listed on the Toronto Stock Exchange and the NYSE Amex under
the symbol "PZG", and on the Frankfurt Exchange under the
symbol "P6G".
Paramount holds
a 100% interest in the San Miguel project and has completed 47,560 meters
of diamond drilling on 213 holes and 3,743 meters
of exploration trenching at San Miguel since the summer of 2006. Paramount has
recently expanded its land holdings by acquiring a 100% interest in the
Temoris Project from Garibaldi Resources Corp., a land package of over 54,000 hectares.
Paramount's land package now includes
most of the ground surrounding the Coeur d'Alene Mines Palmarejo Mine
project, and is comprised of total claims in excess of 180,000 hectares.
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