Paramount Mining Corporation Limited (PCP) is pleased to announce a Share Subscription Agreement between its 85%-owned Indonesian subsidiary PT Paramindo (Paramindo) and PT Cikondang Kancana Prima (CKP) to acquire a controlling interest in the exciting Gunung Rosa gold, silver and base metal mine project in West Java.
The agreement registers Paramindo’s 51% equity interest (up from 10% ownership) in the project. The Company acquired the additional 41% equity following completion of a highly successful helicopter-borne magnetic survey program which identified at least six new significant prospective targets considered to be related to a substantial porphyry intrusive and confirmed Gunung Rosa’s already substantial potential, as detailed in the Company’s 30 April 2012 announcement. As consideration, the Company completed the USD2,000,000 Stage 2 payment to the project owners per the 2 February 2012 announcement.
Terry Holohan, the Company CEO and MD said today, “The timing of the second payment for the acquisition could not be better as it coincides with receiving exciting results from our recent helimag survey. This survey further confirms our geologist’s initial thoughts from the drill data that the existing gold-silver-base metal mesothermal vein system has developed within an intrusive complex and might be associated with a potentially much larger gold-copper porphyry system. Our fieldwork has also shown us that the vein system is far more extensive than we initially thought. This not only increases the likelihood of Paramount finding more resources in the vein system to exploit in the near term, as part of our stated 2012 development strategy, while giving the company plenty of upside potential for finding much larger resources in the medium to long term”.
Funding for the acquisition has been provided under a loan agreement with resource project investors Cape Gannet Ltd, at nil interest, and due for repayment on 30 September 2012. The fee for securing this funding will be the issue of 5 million fully paid ordinary shares.