03:38 PM EST - Paramount Gold and Silver Corp. : and Klondex Mines Ltd. announced that they entered into a binding letter agreement to combine the two companies in a transaction valued at approximately $80 million. The Letter Agreement has been unanimously approved by the Board of Directors of Paramount and Klondex, as well as, by the Special Committee of the Board of Directors of Klondex. Pursuant to the Letter Agreement, each Klondex share will be exchanged for 1.45 Paramount shares, implying a purchase price of $2.32 per Klondex share using closing share prices on the TSX on July 17, 2009. The Transaction represents a premium of 33.3% to the closing price of Klondex shares and a 30.3% premium to the implied value of the unsolicited proposal by Silvercorp Metals Inc. as of July 17, 2009. Klondex has recommended shareholders to support the Paramount Transaction and reject the Silvercorp offer by not tendering their shares to the Silvercorp offer. Paramount Gold and Silver Corp.
shares T.PZG are trading down $0.05 at $1.55.
