Finding what others discard
By Ora Morison
Paramount Gold and Silver Corp. is stuck between a rock and a hard place.
The rock is what’s buried under the ground in Nevada and northern Mexico, where the company has found a supply of left over minerals at former mine sites. The hard place is the stock market, where uncertainties related to global events far removed from Paramount’s control are pinning down its stock price.
The company relies on issuing shares to fund expensive drilling and metallurgic testing at its Sleeper and San Miguel mining sites in Nevada and Mexico, respectively. For the fiscal year ending June 2011, Paramount spent close to $8 million on exploration, about eight times the next biggest cost and the largest single contributor to Paramount’s $28 million loss for the year.
Read the full story on Ottawa Insight. This article was written as part of my business reporting class. Each student followed an Ottawa-based public company and wrote a profile, as well as quarterly report stories about their company.