The Ottawa-based mining firm said it has signed a letter of agreement with Mexoro Minerals Ltd. to acquire all legal and beneficial interest to 12 mining concessions adjacent to Paramount’s San Miguel project in Chihuahua, Mexico.

The company in October 2008 bought out Tara Gold Resources Corp.’s 30-per-cent stake in the San Miguel mining project, with Mr. Crupi telling OBJ at the time that the buyout would put Paramount on the path towards becoming a precious metals producer or a possible sale.

Paramount CEO Christopher Crupi in a statement, “These concessions will be part of an extensive drill program that is expected to commence shortly and will enhance the geological potential of San Miguel and its current 2.6-million-ounce gold equivalent resource.”

The purchase agreement with Mexoro is borne out of a partnership launched in May 2008 that combined Mexoro’s ongoing drill program in the Sierra Madre gold-silver belt in Chihuahua with Paramount’s properties.

Paramount noted the transaction is expected to close in around mid-August 2009.

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