Paramount and Silver Corp. Expands Its San Miguel Project

CHIHUAHUA, MEXICO - Paramount Gold and Silver Corp. has signed an agreement with Garibaldi Resources Inc. (Garibaldi) (CDNX:GGI.V - News) to form a joint venture agreement, and acquire an interest in 17,208 hectares of property. The new agreement will cover approximately 6,657 hectares previously optioned in 2006 and adds several new parcels totalling 10,543 hectares under the umbrella of a joint venture.
The land package in the Guazapares mining district, Mexico, will consist of several parcels. As part of the transaction, Garibaldi will provide Paramount with its geologic data, including the results of its recent regional hyperspectral airborne survey. Paramount will be the exploration manager under the joint venture.
Christopher Crupi, CA, Chief Executive Officer of Paramount said, "This agreement provides Paramount a strategic piece of significant ground surrounding our flagship San Miguel Project. Our contiguous land position in the region now stands at over 100,000 hectares. We believe that the Guazapares mining district hosts a world class precious metals deposit and this agreement marks one further step toward securing and fully developing the potential of this region."
Paramount has made an initial payment to Garibaldi in the amount of $100,000. Paramount will earn a 50% interest by making an additional payment of $400,000, issuing 600,000 restricted common shares, and spending $700,000 on exploration. To increase its interest to 70%, Paramount must spend an additional $1,000,000 in exploration expenditures within 30 months, make an additional payment of $500,000, and issue an additional 400,000 restricted common shares.
Upon earning a 70% joint venture interest, Paramount may increase its interest to 80% within 30 months of the signing of the Agreement, exclusively and limited to the approximately 6,657 hectares referred to in the October 6, 2006, agreement.
The company's address is 346 Waverley Street, Suite 110, Ottawa, ON K2P 0W5, (613) 226-9881.