This News Release is Intended FOR Distribution IN Canada Only and is Not
PARA RESOURCES INC.
450 – 1090 West Georgia Street
Vancouver, British Columbia V6E 3V7
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES
23197640.1
PARA RESOURCES ANNOUNCES CLOSE OF FIRST TRANCHE OF PRIVATE PLACEMENT OF
UNITS
May 2 , 201 7, Vancouver, B.C. -- Para Resources Inc. (the “Company” or “Para”) (TSXV -
“PBR”) (WKN – “A14YF1”) (OTC – “PRSRF”) is pleased to announce that it has closed the first
tranche of its non-brokered private placement (the “Private Placement”) for total gross proceeds
of $1,949,075. The first tranche of the Private Placement consisted of 9,745,375 units at a price
of $0.20 per unit (each a “Unit”). Each Unit is comprised of one common share of the Company
and one -half common share purchase warrant (each whole such warrant a “Warrant”). Each
Warrant entitles the holder to acquire one common share of the Company for a period of 18
months at a price of $0.30. Proceeds of the Private Placement will be used to retire a portion of
acquisition debt for the purchase of the El Limon Mine from Red Rock Resources, to pay the
balance of the purchase price due for the OTU property, to acquire the surface rights to land
associated with the El Limon Mine, for due diligence expenses related to additional projects
under consideration and for general working capital.
Three insiders of the Company participated in the Private Placement and collectively subscribed
for 4,915,375 Units for gross proceeds of $983,075. Participation of the insiders of the Company
in the Private P lacement constitutes a related party transaction as defined under Multilateral
Instrument 61-101 (Protection of Minority Security Holders in Special Transactions ). Because
the Company’s shares trade only on the TSXV, the issuance of securities is exempt from the
formal valuation requirements of Section 5.4 of MI 61 -101 pursuant to Subsection 5.5(b) of MI
61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101.
The Company did not file a material change report 21 days prior to the closing of the private
placement as the details of the participation of insiders of the Company had not been confirmed
at that time.
ABOUT PARA RESOURCES:
Para is a juni or producing gold mining and toll milling company. Para owns approximately 75%
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 has
applied for the necessary permits to commence trial mining operations at its Angelim prospect
on the Tucuma Project 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.
On behalf of the Board of Directors
23197640.1
“C. Geoffrey Hampson”
C. Geoffrey Hampson, Chairman, Chief Executive Officer and Director
For further information, please contact Andrea Laird, telephone: +1-604-259-0302
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.