CHIHUAHUA, Mexico, May 5 /PRNewswire-FirstCall/ -- Mexoro Minerals Ltd. Enters Into Strategic Alliance with Paramount Gold and Silver Corp. MXOM.
Mexoro Minerals is pleased to announce that it has entered into a strategic alliance with Paramount Gold and Silver Corp. to combine mining and exploration expertise, along with efficient use of personnel, drill rigs and current mining concessions to maximize shareholders' value for both companies. The alignment of interest between the two companies creates tremendous synergy, especially as the two companies' Guazapares projects are contiguous and create a large land position in this very prolific area.
The agreement calls for Paramount to invest a minimum of $4 million and maximum of $6 million into Mexoro at a price of $.50 per unit by June 23, 2008. Each unit will consist of 1 common share of Mexoro and 50% warrant coverage to buy 1 common share at $.75. The warrant will be good for 4 years. Paramount will make an immediate investment into Mexoro in the amount of $500,000 in the form of a convertible debenture. Upon closing it is contemplated that the debenture will be converted into units as part of the total investment.
Also, at closing, Chris Crupi will be appointed President of Mexoro Minerals and Mario Ayub will remain the chairman of the board. Paramount will have the right to appoint two members to the board of directors of Mexoro and Mr. Ayub will have the option to be appointed to the board of directors of Paramount.
The companies will form a joint exploration and development management committee with the responsibility of reviewing and planning the exploration programs of both companies. Charles Reed and Barry Quiroz will remain Vice President of Exploration for their respective companies.
Chris Crupi, President of Paramount, commented on the transaction "combining our exploration assets with those of Mexoro, particularly our San Miguel concession which is contiguous to much of the Mexoro land package in the Guazapares region, will give the two companies, arguably, the premier property holdings for exploration in the mineral rich and prolific Sierra Madre Belt. Together, the companies control over 100,000 hectares of land in the region and the combined exploration teams will be one of the most experienced in Mexico."
Mario Ayub, President of Mexoro, said, "This transaction results in synergies on many levels. Paramount is a well managed and a well financed company trading on more senior exchanges then Mexoro currently. The strategic geographical positioning of our properties in relation to Paramount, coupled with our common vision of an aggressive exploration program in this prolific area provides the potential for significant success going forward."
Paramount Gold is a precious metals mining exploration company presently in the early stages of an extensive exploration program at their San Miguel project in the Guazapares Mining District, part of the Sierra Madre Occidental gold-silver belt of Mexico. Paramount Gold and Silver Corp. is the operator of the San Miguel project.
This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect the Company's current beliefs and are based upon information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. The Company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information catered in this Press Release including such forward-looking statements.
Mexoro Minerals Ltd.
C. General Retana #706
Col. San Felipe, C.P. 31203
Chihuahua, Chih., Mx
Source: Mexoro Minerals Ltd.