Paramount Gold and Silver raises $23 million through public offering of common stock

Paramount Gold and Silver Corp., a Canada-based precious metals exploration company, has raised $23 million through a public offering of common stock. Including the over-allotment option which was exercised in full by the underwriters, the company sold a total of 18.4 million shares of common stock at a price of $1.25 per share.

FCMI Financial Corporation has acquired 4 million shares of common stock in the offering.

Update on October 9, 2009:

Paramount Gold has priced its public offering of 16 million shares of common stock at a price of $1.25 per share.

FCMI Financial will acquire shares of Paramount Gold in the offering. In addition, Paramount Gold has granted the underwriters a 30-day option to purchase up to 2.4 million additional shares of common stock to cover over-allotments.

The offering is expected to close on October 15, 2009.

Announcement (October 5, 2009):

Paramount Gold intends to offer 16 million shares of its common stock through a public offering.

Paramount Gold 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.

As part of the transaction, FCMI Financial intends to purchase shares of common stock in the offering.

Dahlman Rose & Company, LLC is acting as book-running manager, while Blackmont Capital, Inc. is acting as joint lead-manager for the offering.

Deal Value (US$ Million) 23
Deal Type                IPO
Sub-Category             Secondary Offering
Deal Status              Completed: 2009-10-15

Deal Participants

Target (Company) Paramount Gold and Silver Corp.

Deal Rationale

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 and for general corporate purposes.

Offer Price ($ per share) 1.25
No. Shares Issued         18400000

Related terms: acquisition, book, canada, corporate, exploration, gold, ipo, metals, mining, precious metals, public offering, silver