Disclosure NewswireTMiCrowdNewswire - Sep 7, 2016
VANCOUVER, BC – Para Resources Inc. (the “Company” or “Para“) (TSXV – “PBR”) (WKN -“A14YF1”) (OTC – “PRSRF”) is pleased to announce the appointment of Mr. Ian Harris as President of the Company effective September 1, 2016. Mr Harris and COO Randy Martin will work together to complete the upgrade at the Company’s El Limon Mine. Mr. Harris will take day to day responsibilities in managing on-going operations and achieving the cost and operational efficiencies in Colombia. Mr. Harris will also be responsible for the review and for making the final investment decision for the Company’s Angelim project in Brazil.
Mr. Harris is senior mining executive with over 20 years’ experience in leading worldwide mining projects. He has mining and management experience in over 20 countries, with a wide range of mining methods, commodities, project phases and sizes, successful advancing project in some of the most challenging environments. Mr Harris has a proven ability to pinpoint and drive improvement by combining leadership and team building with strong financial and production modeling knowledge. He is bilingual in Spanish and English.
His key accomplishments include:
- As CEO from March 2014 until recently he designed and implemented a strategic plan for AMAK Mining Co., the first private mining company operating in Saudi Arabia with its Al Masane Mine and Plant. Despite the proximity to the Saudi-led intervention in Yemen, results included 1) no LTAs during tenure, 2) a 20% increase in base metal production, 3) the first precious metal primary production, 4) an 11% decrease in unit cash costs, 5) the acquisition of new exploration and operating mining leases, and 6) the successful planned transition of the mine and plant from contracted O&M to self-operated.
- In various positions culminating as Senior VP, Chief Mining Engineer and Country Manger from January 2006 through August 2011 he successfully led a campaign to reactivate Corriente Resource’s mining operations in Ecuador after a three-year suspension, by successfully navigating through a new constitution and a new mining law. This effort led to the government designating the Corriente’s mining projects as nationally strategic; the only privately owned project with such designation. Corriente was the first to re-activate operations and to start and finalize contract negotiation for construction of the first industrial-scale mining projects in Ecuador following the regulatory halt. These achievements led to the sale of Corriente for USD $690 M.
- Held various positions at Washington Group International, including Project Manager and Principal Mining Engineer from 2001 through 2006, Highlights include as Project Manager, navigating a two-month national strike, followed by foreign currency exchange controls in Venezuela for the 50/50 mixed private-public company, Carbones de la Guajira. Despite obstacles, Mina Norte, Carbones de la Guajira’s sole mine, doubled total material production and hit new levels of safety performance.
“Ian is a great addition to the Para team as we transition from exploration and construction into production and expansion. He brings many years of experience working in a wide variety of environments and jurisdictions that will be essential for Para as we expand our Colombian footprint and prepare to advance our the Angelim project, in Brazil, in 2017. Ian will also lead Para’s due diligence and technical overview of the new potential acquisition’s Para is presently considering as well as assist the company in seeking and identifying other new opportunities,” states Para CEO, Geoff Hampson.
The cause of the production issues at El Limon that were previously announced by the Company, have been identified and resolved. The shaft and pinion for Ball Mill 1 (“BM1”) were repaired and BM1 was re-started on August 15th. BM1 ran smoothly for the last week of the month. Gold production for the month of August was negatively impacted by the shut down of the mill during repairs and total production for the month was 147 ounces of gold. There are 3,500 tons of material with a gold grade in excess of 4 gpt in inventory from development work underground. The head grade of new material being mined today is greater than 8 gpt. The new material and the existing inventory will be blended resulting is slightly lower blended grades than targeted during the approximately 90 days it will take to deplete the inventory, at which time we expect the average grade will return to the targeted 8 gpt.
The Company also reports that the Contractor building the foundation for Ball Mill 2 (“BM2”) is 45-60 days behind schedule as they were unable to source some of the key steel elements of the project on time. The revised schedule for completion of the installation is October 31, 2016. Para still expects to be at 160-200 TPD production by the end of 2016 with 200 TPD average production rate projected for 2017. The 2017 target production of 20,000-24,000 ounces of gold is unchanged.
In August 2016, the Company was informed by Red Rock Resources PLC (“Red Rock”) that they believe a “triggering event” occurred under the terms of the USD $1 million promissory note (the “Note”), due in May 2018, that formed a part of the purchase price for the El Limon Mine from Red Rock by Colombia Milling Limited (“CML”). Red Rock contends that when Para’s ownership of CML exceeded 50%, that triggered an option for Red Rock to convert the Note into shares of CML or the related party that made a public offering. Red Rock contends that this provision gives them the right to convert into shares of Para Resources Inc. The Company does not agree with this interpretation and contends that Para was already a public company when it entered into the agreement to become a shareholder of CML and that no “triggering event” occurred. CML remains a private company. In addition, Para is not a party to the purchase agreement between Red Rock and CML. Discussions between the parties have occurred and are on-going. Para will vigorously oppose any attempt by Red Rock in this regard.
The Company is pleased to announce that 100% of its $0.10 warrants due to expire on August 22, 2016 were exercised for net proceeds to the Company of $972,849. In addition, Conex Services Inc. and Lake Forest Development Corp exercised all of their $0.18 warrants that expire in 2017 for net proceeds to the Company of $2,348,700. Randy Martin exercised 985,275 warrants at $0.20 per share that expire in early 2018 for net proceeds of $197,055. Geoff Hampson, Para’s CEO states,” These additional funds will allow Para to pursue other acquisition or JV opportunities where cash deposits may be required. The early exercise of these warrants by the insiders is an indication of the unprecedented high level of support the company enjoys from its major shareholders. Having additional liquidity allows management to aggressively pursue new growth opportunities.”
ABOUT EL LIMON
The El Limon property is located in the northwest part of Colombia near the town of Zaragoza, Antioquia, Colombia and is accessible via both paved highways and gravel roads. The mine is situated in the wide Zaragoza Gold District which extends from El Bagre to Remedios and based on the historical alluvium mining and the number of primary underground gold mines, is considered to be one of the most prolific gold zones in Colombia.
The El Limon mine is currently operating underground on Levels 6 and 7 where the diluted head grade continues to be high at approximately 8+ gpt Au. The vein system is open at depth but constrained at both ends by faults. Management believes the El Limon property offers multiple exploration targets that could significantly increase the life of the mine. It is management’s intention to utilize some of the cash generated from mining, to drill the property to expand the number of targeted areas for mining.
Mr. Paulo J. Andrade, a Member of the Australian Institute of Geoscientists (MAIG #6136), Senior Geologist, VP and Country Manager for Para Resources, Inc., a CP/QP under NI-43-101, has reviewed and approved the scientific and technical information in this press release.
ABOUT PARA RESOURCES:
Para is an exploration stage gold mining and toll milling company. Para owns approximately 70% of the El Limon project, in Colombia, which in addition to its current underground operation has toll milling opportunities, and exploration and development upside. In addition, the Company is gearing up to commence trial mining operations at its Tucuma Project and in particular on the Angelim prospect in Para State, Brazil. Para will continue to take advantage of current market conditions to acquire and develop additional highly economic, near-term production assets that have strong exploration and development upside.
Management’s production decisions for the El Limon Gold Project are not based on a feasibility study of mineral reserves demonstrating economic and technical viability. As a result, the project has a much higher risk of economic or technical failure and may adversely impact the Company’s projected profits, if any. The risks associated with this decision are set forth in the Company’s latest annual management’s discussion and analysis available on the Company’s website and the under Para’s SEDAR profile on www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS
“C. Geoffrey Hampson”
C. Geoffrey Hampson, Chief Executive Officer and Director
For further information, please contact Andrea Laird: Telephone: +1-604-259-0302
Neither TSX Venture Exchange nor its regulation service provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements, analysis and other information contained in this press release about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. Management believes that its estimates regarding its production plan and recovery from the El Limon mine are reasonable; however there are no assurances that the production estimates will be met for factors beyond the control of management, including the impact of proposed improvements at the mine, the impact of general business and economic conditions, fluctuating metal prices, currency exchange rates, possible variations in grade or recovery rates, changes in project parameters as plans continue to be refined, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, government regulation, environmental risks and title disputes or claims. The Company does not undertake any obligation to update forward-looking statements even if circumstances or management’s estimates or opinions should change except as required by applicable laws. Investors should not place undue reliance on forward-looking statements.