Loading ...Shareholders in Calico Resources (TSXV:CKB) enjoyed a hefty bump to their holdings after the company announced it is being bought out by Paramount Gold Nevada (NYSEMKT:PZG). At close of trading on the Toronto Venture Exchange the small-cap stock was up by a third, at 2.5 cents a share, at almost five times regular volumes.
The deal worth $11.5 million will net Paramount Gold Nevada the Grassy Mountain gold-silver project. A 2015 preliminary economic assessment has the prospective mine producing an average 53,000 ounces of gold per year and 82,000 ounces of silver. Calico owns the mineral rights to the site, located in an unpopulated portion of Malheur County consisting of 9,300 acres.