Paramount Gold and Silver Corp. Acquires X-Cal Resources Ltd. and Sleeper Gold Mine in Nevada

Paramount Gold and Silver Corp. (TSX:PZG)(NYSE Amex:PZG)(FRANKFURT:PG6) (WKN:A0HGKQ) has entered into an agreement with X-Cal Resources Ltd. (TSX:XCL) to acquire all of the common shares of X-Cal in a transaction valued at approximately C$31.8 million.

The press release is quoted as saying:

The Transaction has been unanimously approved by the Board of Directors of each of Paramount and X-Cal. The President of X-Cal has executed a support agreement in favor of the Transaction. Pursuant to the definitive agreement, eight (8) X-Cal shares will be exchanged for one (1) Paramount share. The Transaction implies a purchase price of C$0.18 per X-Cal share, representing a premium of 73% over closing market prices on the TSX as of June 21, 2010.

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