Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Precious Metals Company to Acquire New Project in Oregon
Research Report

Share on Stocktwits


With the new site just 12 miles from an existing project, a ROTH Capital Partners analyst examined the strategic move.

In a Nov. 15 research note, ROTH Capital Partners analyst Jake Sekelsky reported Paramount Gold Nevada Corp. (PZG:NYSE.American) entered into an agreement to purchase the Frost project in Oregon, about 12 miles from its Grassy Mountain site, for $250,000.

"The transaction provides Paramount with the opportunity to discover additional ounces that could provide additional mill feed for Grassy Mountain," he noted.

Sekelsky also reviewed the agreement terms and discussed the likelihood of Paramount drilling the new property.

Per the agreement terms, Paramount would pay Nevada Select Royalty (private) five payments to fully own Frost, he explained. They are $10,000 on closing, $15,000 once a drill permit is obtained, $25,000 on the first year anniversary of the permit receipt, $50,000 on the second and third anniversaries and $100,000 on the fourth. Nevada Select would retain a 2% net smelter royalty on Frost.

In view of successful past exploration efforts at Frost, Paramount will likely drill there in 2019 to delineate additional ounces to be added to its Grassy Mountain mine plan, noted Sekelsky. Most recently, Paramount's radiometric magnetic survey over Frost revealed geology similar to Grassy Mountain's. Prior to that, historical drilling returned high-grade intercepts, including 1.5 meters grading 20 grams per ton at shallow depths.

As for permitting at Grassy Mountain, it continues to progress, with 14 of the 23 baseline studies approved so far. The remainder should be greenlighted in H1/19, at which point Paramount could submit the consolidated permit application for Grassy Mountain.

"Paramount should be in line for a rerating once permitting milestones are achieved over the next year," Sekelsky highlighted.

Currently, the Buy-rated company is trading at ~$1.02 per share, whereas ROTH's target price on it is $4 per share.

Editor's note: an earlier version of this article incorrectly named the company as Paramount Gold and Silver. In 2015 Paramount Gold and Silver was acquired by Coeur Mining and Paramount Gold Nevada was spun out. We apologize for the error.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from ROTH Capital Partners, Paramount Gold Nevada Corp., Company Note, November 15, 2018

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

ROTH makes a market in shares of Paramount Gold Nevada Corp and as such, buys and sells from customers on a principal basis.

Shares of Paramount Gold Nevada Corp may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.

Want to read more about Gold investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe