Paragon Minerals closes private placement with Canadian Zinc Corporation

    




  TSX Venture Exchange Symbol: PGR  Shares Issued: 60,649,254 

 VANCOUVER, Aug. 9, 2012 /CNW/ - Paragon Minerals Corporation  ("Paragon") is pleased to announce that it has closed the previously announced  non-brokered private placement financing with Canadian Zinc Corporation  ("Canadian Zinc"). Canadian Zinc has invested $490,000 through the purchase of 7,000,000  Paragon shares priced at $0.07 per share.  The shares issued in  connection with the financing will be subject to a four month hold  period that expires on December 10, 2012.  Proceeds of the financing  will be used for general and administrative purposes and  exploration/maintenance of Paragon properties. 

 Concurrent with the private placement subscription agreement, Paragon  entered into a definitive agreement with Canadian Zinc, whereby Canadian Zinc will acquire all of the outstanding common shares of  Paragon in exchange for common shares of Canadian Zinc by way of a  statutory plan of arrangement (the "Arrangement").  The Arrangement is  subject to approval by the Paragon shareholders, regulatory and court  approvals, and other customary closing conditions. See Paragon News  Release dated July 31, 2012 for further details. 

 About Paragon Minerals Corporation 

 Paragon Minerals Corporation is a Canadian-based mineral exploration  company focused on gold and base-metal exploration in Newfoundland and  northwest Ontario.  Paragon's flagship project is the 100%-owned South  Tally Pond VMS project where it is advancing a significant precious  metal rich massive sulphide deposit located in producing base metal  mining district in central Newfoundland. Paragon is also exploring a  portfolio of gold properties through partner and company-funded  exploration programs. 

 PARAGON MINERALS CORPORATION 

 "Michael J. Vande Guchte" President & CEO 

 Forward-looking Statements: This news release contains certain statements that may be deemed  "forward-looking statements".  All statements in this release, other  than statements of historical fact, that address events or developments  that Paragon expects to occur, are forward looking statements.   Forward-looking statements are statements that are not historical facts  and are generally, but not always, identified by the words "expects",  "plans", "anticipates", "believes", "intends", "estimates", "projects",  "potential" and similar expressions, or that events or conditions  "will", "would", "may", "could" or "should" occur.  Forward-looking statements in this document include statements regarding  approvals for, and completion of, the proposed plan of arrangement.  Although Paragon believes the expectations expressed in such  forward-looking statements are based on reasonable assumptions, such  statements are not guarantees of future performance and actual results  may differ materially from those in forward-looking statements.   Factors that could cause the actual results to differ materially from  those in forward-looking statements include inability to obtain  required regulator, shareholder or governmental approvals and general  economic, market or business conditions.  Investors are cautioned that  any such statements are not guarantees of future performance and actual  results or developments may differ materially from those projected in  the forward-looking statements. Forward-looking statements are based on  the beliefs, estimates and opinions of Paragon's management on the date  the statements are made. Except as required by securities laws, Paragon  undertakes no obligation to update these forward-looking statements in  the event that management's beliefs, estimates or opinions, or other  factors, should change. These statements are based on a number of  assumptions, including, among others, assumptions regarding general  business and economic conditions, the timing of the receipt of  regulatory, shareholder and governmental approvals for the transactions  described herein and the ability of Paragon and other relevant parties  to satisfy stock exchange and other regulatory requirements in a timely  manner. The foregoing list of assumptions is not exhaustive.  Events or  circumstances could cause results to differ materially. 

 "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." 

Paragon Minerals Corporation


CONTACT:  please visit the company website or contact Michael Vande Guchteat(604) 629-2353. 


    

Copyright