May 13 2015
Para Resources Inc. announces that the Company and Angra Metals Mineração Ltda., a wholly-owned subsidiary of the Company, have executed an agreement dated May 11, 2015 with Mineração Iraja S/A, bringing into effect a Mineral Rights Purchase and Sale Agreement.
Pursuant to the Agreements Para will, subject to the completion of conditions of closing and TSX Venture Exchange (the "Exchange") approval, purchase a 100% right, title and interest in and to the Cumaru-Gradaús Gold Project located in Para State, Brazil in consideration of the issuance of 6,440,500 common shares of Para (which will constitute approximately 19.9% of the outstanding common shares of Para) and a 2% NSR in favour of the Vendor, which will also apply to any property brought into commercial production by the Company within 5 km of the Cumaru-Gradaús Gold Project. In the event commercial production exceeds 1,000,000 oz of gold, then the Vendor's royalty shall be increased to a 3% NSR.
The Cumaru-Gradaús Gold Project is also subject to existing royalties, in an aggregate of 2.4% of NSR.
The Vendor shall be granted a further 1% NSR in the event the Company commences commercial production on any other project in Brazil, including the Company's Tucumã project in Para State, Brazil.
Mr. Geoff Hampson, President and CEO of Para stated: "We have been negotiating the acquisition of the Cumaru-Gradaús Gold Project for some time and are pleased to have come to an agreement to acquire same. We identified the Cumaru-Gradaús Gold Project as complementary to the Company's Tucumã property, in that they are located approximately 190 kilometers apart and share similar characteristics in terms of the Company's overall strategy to identify, explore and develop saprolitic based gold resources."
About the Cumaru-Gradaús Gold Project:
The Cumaru-Gradaús Gold Project area is located in the southern part of the Carajás Mineral Province. It is one of the two largest gold districts in Carajás, the other being the famous Serra Pelada district, about 250 kilometers straight line to the northeast.
The alluvial gold deposits of the region are largely derived from weathering of in-situ mineralization. Since 1980, the Cumaru District has officially produced more than 1.5 million ounces of gold, mostly from the Gradaús Mine and artisanal workings (garimpos) nearby.
The total area of the Cumaru-Gradaus Project Area adds up to some 2,528.06 ha. Thus far only a small portion of which has been systematically drilled, and two types of primary gold mineralization have been identified: (a) lode gold deposits hosted by the greenstone sequence, and (b) lode and disseminated gold hosted by the Cumaru intrusive stock.
The greenstone-hosted deposits quartz-carbonate veins and stockwork systems are associated with late-stage shear zones cutting the volcano-sedimentary sequence and belong to the "classic" greenstone gold deposit model which accounts for most of the gold production in both Canada and Brazil.
Secondary gold occurrences have also been identified and could have been derived from in situ alteration processes or sourced from other types of gold mineralization identified elsewhere in the Carajas Province (e.g. skarns and sedimentary hosted deposits), which are suspected to occur in nearby the Cumaru-Gradaus Project Area as well.
Para's main exploration objective is to further explore the area by means of geologic mapping and drilling, aiming at additional shallow saprolite-based gold occurrences. In addition, Para is willing to undertake a focused evaluation program of the remaining alluvial and other gold bearing unconsolidated material such as colluvium-elluvium transition zones to delineate volumes of free-ore which can be easily processed on a cost effective manner.
Mr. Paulo J. Andrade, Senior Geologist, VP and Country Manager for Para, Member of the Australian Institute of Geoscientists (MAIG #6136) and qualified person under National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.