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What changed in Paramount Gold Nevada Corp.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Paramount Gold Nevada Corp.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+101 added−92 removedSource: 10-K (2024-06-30) vs 10-K (2023-09-26)

Top changes in Paramount Gold Nevada Corp.'s 2024 10-K

101 paragraphs added · 92 removed · 72 edited across 5 sections

Item 1. Business

Business — how the company describes what it does

4 edited+0 added−0 removed38 unchanged
Biggest changeAnnual Payments we have made to federal and other state agencies to maintain our claims for the upcoming 2023-24 year are as follows: Property Number of Claims 1 Total Annual Payment to Maintain Claims 2 Sleeper Gold Project and Other Nevada Claims 2,623 $ 490,194 Grassy Mountain Project and Other Oregon Claims 548 $ 97,313 Total Annual Payment to Maintain Mining Claims $ 587,507 1.
Biggest changeAnnual Payments we have made to federal and other state agencies to maintain our claims for the upcoming 2024-25 year are as follows: Property Number of Claims 1 Total Annual Payment to Maintain Claims 2 Sleeper Gold Project and Other Nevada Claims 2,623 $ 584,064 Grassy Mountain Project and Other Oregon Claims 548 $ 116,493 Total Annual Payment to Maintain Mining Claims $ 700,557 1.
In addition, we are required to pay the county recorder of the county in which the claim is situated an annual fee. The county fees in Nevada and Oregon are $12.00 and $5.00 per claim, respectively. On certain claims we own, we are required to pay a fee of $165.00 for each 20 acres of an association placer.
In addition, we are required to pay the county recorder of the county in which the claim is situated an annual fee. The county fees in Nevada and Oregon are $12.00 and $5.00 per claim, respectively. On certain claims we own, we are required to pay a fee of $200 for each 20 acres of an association placer.
Most federally owned land is administered by the Bureau of Land Management (“BLM”). On existing claims owned by the federal government, we are required to pay annual claim maintenance fees of $165 per claim on or before September 1st at the State Office of the BLM.
Most federally owned land is administered by the Bureau of Land Management (“BLM”). On existing claims owned by the federal government, we are required to pay annual claim maintenance fees of $200 per claim on or before September 1st at the State Office of the BLM.
Reclamation activities are conducted in accordance in with detailed plans which must be reviewed and approved by the both the BLM and NDEP. Additional information regarding our reclamation activities at Sleeper on Page 23 . HUMAN CAPITAL RESOURCES As of June 30, 2023, we employed seven full-time employees and one consultant.
Reclamation activities are conducted in accordance in with detailed plans which must be reviewed and approved by the both the BLM and NDEP. Additional information regarding our reclamation activities at Sleeper on Page 24 . HUMAN CAPITAL RESOURCES As of June 30, 2024, we employed six full-time employees and one consultant.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAs of June 30, 2023, we have $4.3 million in outstanding indebtedness in the form of convertible notes and $1.6 million in the form of a note payable. Our ability to repay the outstanding debt on at maturity will depend on the Company having sufficient cash on hand.
Biggest changeAs of June 30, 2024, we have $15 million in outstanding indebtedness in the form of a convertible debenture. Our ability to repay the outstanding debt on at maturity will depend on the Company having sufficient cash on hand.
Factors that could cause exploration and development costs to increase include adverse weather conditions, difficult terrain, increased government regulation and shortages of qualified personnel. Assuming no adverse developments outside of the ordinary course of business, our exploration and development budget will be approximately up to $4.0 million for the next twelve months.
Factors that could cause exploration and development costs to increase include adverse weather conditions, difficult terrain, increased government regulation and shortages of qualified personnel. Assuming no adverse developments outside of the ordinary course of business, our exploration and development budget will be approximately up to $1.8 million for the next twelve months.
As a result of our evaluation of the Company’s liquidity for the next twelve months, we have included a discussion about our ability to continue as a going concern in our consolidated financial statements, and our independent auditor’s report for year ended June 30, 2023 includes an explanatory paragraph that expresses substantial doubt about our ability to continue as a “going concern.” Our capital needs have, in recent years, been funded through sales of our debt and equity securities.
As a result of our evaluation of the Company’s liquidity for the next twelve months, we have included a discussion about our ability to continue as a going concern in our consolidated financial statements, and our independent auditor’s report for year ended June 30, 2024 includes an explanatory paragraph that expresses substantial doubt about our ability to continue as a “going concern.” Our capital needs have, in recent years, been funded through sales of our debt and equity securities, including debt convertible into royalty interests.
Even if we are successful in identifying mineral reserves that can be commercially developed, there can be no assurances that we will generate any revenues and therefore our losses will continue. No revenue generated from operations. We have not generated any revenues from operations. Our net loss for the fiscal year ended June 30, 2023 totaled $6.45 million.
Even if we are successful in identifying mineral reserves that can be commercially developed, there can be no assurances that we will generate any revenues and therefore our losses will continue. No revenue generated from operations. We have not generated any revenues from operations. Our net loss for the fiscal year ended June 30, 2024 totaled $8.06 million.
Sales or the availability for sale of shares of common stock by stockholders could cause the market price of our common stock to decline and could impair our ability to raise capital through an offering of additional equity securities. I tem 1B. Unresolve d Staff Comments. Not applicable as a smaller reporting company.
Sales or the availability for sale of shares of common stock by stockholders could cause the market price of our common stock to decline and could impair our ability to raise capital through an offering of additional equity securities. I tem 1B. Unresolve d Staff Comments. None.
We have incurred significant losses since our inception and expect to continue to incur losses as a result of costs and expenses related to maintaining our properties and general and administrative expenses. As of June 30, 2023, we had cash of approximately $0.8 million and an accumulated deficit of approximately $74.3 million.
We have incurred significant losses since our inception and expect to continue to incur losses as a result of costs and expenses related to maintaining our properties and general and administrative expenses. As of June 30, 2024, we had cash of approximately $5.4 million and an accumulated deficit of approximately $82.4 million.

Item 2. Properties

Properties — owned and leased real estate

31 edited+18 added−4 removed109 unchanged
Biggest changeSummary of Sleeper Gold Property Mineral Resources at the End of June 30, 2023 and 2022 Gold (Au) (1,2,3,4,5,6,7,8) Silver (Ag) (1,2,3,4,5,6,7,8) 28 Years Ended June 30, 2023 2022 Summary Mineral Resources Gold Measured Resources Total tons (000s) 5,403 — Grade (oz./ ton) 0.016 — Ounces (000s) 85 — Indicated Resources Total tons (000s) 174,535 — Grade (oz./ ton) 0.010 — Ounces (000s) 1,812 — Measured and Indicated Resources Total tons (000s) 179,938 — Grade (oz./ ton) 0.011 — Ounces (000s) 1,897 — Inferred Resources Total tons (000s) 132,176 237,600 Grade (oz./ ton) 0.009 0.0102 Ounces (000s) 1,214 2,417 Summary Mineral Resources Silver Measured Resources Total tons (000s) 5,403 — Grade (oz./ ton) 0.105 — Ounces (000s) 570 — Indicated Resources Total tons (000s) 174,535 — Grade (oz./ ton) 0.118 — Ounces (000s) 20,661 — Measured and Indicated Resources Total tons (000s) 179,938 — Grade (oz./ ton) 0.118 — Ounces (000s) 21,231 — Inferred Resources Total tons (000s) 132,176 237,600 Grade (oz./ ton) 0.071 0.1030 Ounces (000s) 9,454 24,458 1.
Biggest changeSummary of Sleeper Gold Property Mineral Resources at the End of June 30, 2024 and 2023 Gold (Au) (1,2,3,4,5,6,7) Tons (000s) Grade (oz./ton) Ounces (000s) Measured mineral resources 5,403 0.016 85 Indicated mineral resources 174,535 0.010 1,812 Measured + Indicated mineral resources 179,938 0.011 1,897 Inferred mineral resources 132,176 0.009 1,214 Silver (Ag) (1,2,3,4,5,6,7) Tons (000s) Grade (oz./ton) Ounces (000s) Measured mineral resources 5,403 0.105 570 Indicated mineral resources 174,535 0.118 20,661 Measured + Indicated mineral resources 179,938 0.118 21,231 Inferred mineral resources 132,176 0.071 9,454 1.
Plan of Operations and other required State permits in place for exploration.
Plan of Operations and other required State permits in place for exploration.
Prior to use in mineral resource or mineral reserve estimation, the selected data to support estimation were compiled from Paramount’s databases into RESPEC’s GeoSequel database and reviewed for improbable entries. Written procedures and guidelines are used to support estimation methods and approaches. Estimations include evaluation of modifying and technical factors.
Prior to use in mineral resource or mineral reserve estimation, the selected data to support estimation were compiled from Paramount’s databases into RESPEC’s GeoSequel database and reviewed for improbable entries. Written procedures and guidelines are used to support estimation methods and approaches. Estimations include evaluation of modifying and technical factors.
Gold (Au) (1,2,3,4,5,6,7) Tons (000s) Grade (oz./ton) Ounces (000s) Metallurgical Recovery Measured mineral resources 21,153 0.017 363 80 % Indicated mineral resources 12,902 0.030 392 80 % Measured + Indicated mineral resources 34,055 0.022 755 80 % Inferred mineral resources 1,151 0.037 42 80 % Silver (Ag) (1,2,3,4,5,6,7) Tons (000s) Grade (oz./ton) Ounces (000s) Metallurgical Recovery Measured mineral resources 21,153 0.072 1,529 60 % Indicated mineral resources 12,902 0.115 1,480 60 % Measured + Indicated mineral resources 34,055 0.088 3,009 60 % Inferred mineral resources 1,151 0.109 126 60 % 1.
Gold (Au) (1,2,3,4,5,6,7) Tons (000s) Grade (oz./ton) Ounces (000s) Metallurgical Recovery Measured mineral resources 21,153 0.017 363 80 % Indicated mineral resources 12,902 0.030 392 80 % Measured + Indicated mineral resources 34,055 0.022 755 80 % Inferred mineral resources 1,151 0.037 42 80 % 22 Silver (Ag) (1,2,3,4,5,6,7) Tons (000s) Grade (oz./ton) Ounces (000s) Metallurgical Recovery Measured mineral resources 21,153 0.072 1,529 60 % Indicated mineral resources 12,902 0.115 1,480 60 % Measured + Indicated mineral resources 34,055 0.088 3,009 60 % Inferred mineral resources 1,151 0.109 126 60 % 1.
These internal controls include quality assurance and quality control (“QA/QC”) programs in the collection and analysis of drill hole assay information based on: • Third-party certified labs used for assays reported in public disclosure or resource models; • Drill programs with insertion of blank, duplicate, and certified reference materials; and • Sufficient QA/QC results for the analytical programs.
These internal controls include quality assurance and quality control (“QA/QC”) programs in the collection and analysis of drill hole assay information based on: • Third-party certified labs used for assays reported in public disclosure or resource models; 23 • Drill programs with insertion of blank, duplicate, and certified reference materials; and • Sufficient QA/QC results for the analytical programs.
To meet the requirement of reasonable prospects for eventual economic extraction, a pit optimization was run using the parameters summarized in following Table: Item Value Unit Mining Cost 2.40 $/tonne Heap Leach Processing cost 3.08 $/tonne processed Bio-oxidation Processing cost 8.52 $/tonne processed Process rate 30,000 tonnes per day processed General and Administration cost 0.46 $/tonne processed Au price 1,800 $/oz Ag price 22 $/oz Au recovery 84.6 percent 26 Ag recovery 52.3 percent Royalty 1.5% NSR • The pit shell created by the optimization was used to constrain the mineral resources, which are reported at a cut-off grade of 0.14 g Au/t for oxide and mixed materials, whereas the sulfide material is reported at a cut-off grade of 0.17 g Au/t.
To meet the requirement of reasonable prospects for eventual economic extraction, a pit optimization was run using the parameters summarized in following Table: Item Value Unit Mining Cost 2.40 $/tonne Heap Leach Processing cost 3.08 $/tonne processed Bio-oxidation Processing cost 8.52 $/tonne processed Process rate 30,000 tonnes per day processed General and Administration cost 0.46 $/tonne processed 27 Au price 1,800 $/oz Ag price 22 $/oz Au recovery 84.6 percent Ag recovery 52.3 percent Royalty 1.5% NSR • The pit shell created by the optimization was used to constrain the mineral resources, which are reported at a cut-off grade of 0.14 g Au/t for oxide and mixed materials, whereas the sulfide material is reported at a cut-off grade of 0.17 g Au/t.
The economic cut-off grade estimate uses a gold price of $1,600/oz, mining costs of $100/ton processed, surface re-handle costs of $0.20/ton 22 processed, process costs of $35/ton processed, general and administrative costs of $20/ton processed, and refining costs of $6/oz Au recovered. Metallurgical recovery is 94.5% for gold. Mining recovery is 97% and mining dilution is assumed to be 8%.
The economic cut-off grade estimate uses a gold price of $1,600/oz, mining costs of $100/ton processed, surface re-handle costs of $0.20/ton processed, process costs of $35/ton processed, general and administrative costs of $20/ton processed, and refining costs of $6/oz Au recovered. Metallurgical recovery is 94.5% for gold. Mining recovery is 97% and mining dilution is assumed to be 8%.
Paramount has the right to reduce the NSR from 2% to 1% for a payment of $800,000. 30 In November 2018, Paramount entered into an agreement with Nevada Select to purchase 100% interest in the Frost Project, which consists of 40 mining claims located approximately 12 miles west of its Grassy Mountain Project.
Paramount has the right to reduce the NSR from 2% to 1% for a payment of $800,000. In November 2018, Paramount entered into an agreement with Nevada Select to purchase 100% interest in the Frost Project, which consists of 40 mining claims located approximately 12 miles west of its Grassy Mountain Project.
A total consideration of $250,000 payable to Nevada Select will be based on certain events over time. Nevada Select will retain a 2% NSR on the Frost Claims and Paramount has the right to reduce the NSR to 1% for a payment of $1 million. Item 3. Legal Proceedings. None Item 4. Mine Saf ety Disclosures.
A total consideration of $250,000 payable to Nevada Select will be based on certain events over time. Nevada Select will retain a 2% NSR on the Frost Claims and Paramount has the right to reduce the NSR to 1% for a payment of $1 million. 30 Item 3. Legal Proceedings. None Item 4. Mine Saf ety Disclosures.
Previous Operators 19 Companies and individuals involved in exploration prior to Paramount’s Project interest include prospectors Richard “Dick” Sherry and Eugene “Skip” Yates (1986), Atlas Precious Metals (Atlas) (1986 to 1992), Golden Predator Mines U.S. Inc., Newmont Exploration Ltd (Newmont) (1992-1996), Tombstone Exploration Company Ltd (Tombstone) (1998), Seabridge, and Calico (2000 to 2015).
Previous Operators Companies and individuals involved in exploration prior to Paramount’s Project interest include prospectors Richard “Dick” Sherry and Eugene “Skip” Yates (1986), Atlas Precious Metals (Atlas) (1986 to 1992), Golden Predator Mines U.S. Inc., Newmont Exploration Ltd (Newmont) (1992-1996), Tombstone Exploration Company Ltd (Tombstone) (1998), Seabridge, and Calico (2000 to 2015).
Paramount, the DOGAMI and the permitting agencies continued to work together to discuss the additional information requested, ensuring the submission of a complete modified CPA which will trigger the 225 day maximum permit evaluation process, upon which draft permits are issued.
Paramount, the DOGAMI and the permitting 20 agencies continued to work together to discuss the additional information requested, ensuring the submission of a complete modified CPA which will trigger the 225 day maximum permit evaluation process, upon which draft permits are issued.
The 100% owned mining claims are summarized in the following table, (acreage is approximate): The Sleeper Gold Project Properties Claims Approximate Acres Sleeper Gold Mine 1,044 16,171 Dunes 394 7,405 Mimi 884 18,243 South Sleeper 152 3,098 Total 2,474 44,917 23 The following map illustrates the general location of the Sleeper Gold Project and the associated mining claims: Property Agreements and Royalty Obligations: The Snyder Syndicate, a private company, holds a one percent (1%) net smelter return royalty on the 1,044 Sleeper Gold mine claims in a mining scenario.
The 100% owned mining claims are summarized in the following table, (acreage is approximate): The Sleeper Gold Project Properties Claims Approximate Acres Sleeper Gold Mine 1,044 16,171 Dunes 394 7,405 Mimi 884 18,243 South Sleeper 152 3,098 Total 2,474 44,917 24 The following map illustrates the general location of the Sleeper Gold Project and the associated mining claims: Property Agreements and Royalty Obligations: The Snyder Syndicate, a private company, holds a one percent (1%) net smelter return royalty on the 1,044 Sleeper Gold mine claims in a mining scenario.
Grassy Mountain Property Summary of Mineral Reserves at the End of June 30, 2023 and 2022 Gold (Au) (1,2,3) Tons (000s) Grade (oz./ton) Ounces (000s) Metallurgical Recovery Proven mineral reserves 260 0.18 47 94.5 % Probable mineral reserves 1,652 0.20 333 94.5 % Total mineral reserves 1,912 0.20 380 94.5 % Total plus mining loss & dilution 2,070 0.19 390 94.5 % Silver (Ag) (1,2,3) Tons (000s) Grade (oz./ton) Ounces (000s) Metallurgical Recovery Proven mineral reserves 260 0.26 68 73.4 % Probable mineral reserves 1,652 0.29 486 73.4 % Total mineral reserves 1,912 0.29 554 73.4 % Total plus mining loss & dilution 2,070 0.28 578 73.4 % 1.
Grassy Mountain Property Summary of Mineral Reserves at the End of June 30, 2024 and 2023 Gold (Au) (1,2,3) Tons (000s) Grade (oz./ton) Ounces (000s) Metallurgical Recovery Proven mineral reserves 260 0.18 47 94.5 % Probable mineral reserves 1,652 0.20 333 94.5 % Total mineral reserves 1,912 0.20 380 94.5 % Total plus mining loss & dilution 2,070 0.19 390 94.5 % Silver (Ag) (1,2,3) Tons (000s) Grade (oz./ton) Ounces (000s) Metallurgical Recovery Proven mineral reserves 260 0.26 68 73.4 % Probable mineral reserves 1,652 0.29 486 73.4 % Total mineral reserves 1,912 0.29 554 73.4 % Total plus mining loss & dilution 2,070 0.28 578 73.4 % 1.
Summary Gold Mineral Reserves as of June 30, 2023( 1,2,3,4 ): Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) United States Grassy Mountain 260 0.18 47 1,652 0.20 333 1,911 0.20 380 Total 260 0.18 47 1,652 0.20 333 1,911 0.20 380 Summary Silver Mineral Reserves as of June 30, 2023( 1,2,3,4 ): Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) United States Grassy Mountain 260 0.26 68 1,652 0.29 486 1,911 0.29 554 Total 260 0.26 68 1,652 0.29 486 1,911 0.29 554 17 1.
Summary Gold Mineral Reserves as of June 30, 2024( 1,2,3,4 ): Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) United States Grassy Mountain 260 0.18 47 1,652 0.20 333 1,911 0.20 380 Total 260 0.18 47 1,652 0.20 333 1,911 0.20 380 Summary Silver Mineral Reserves as of June 30, 2024( 1,2,3,4 ): Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) United States Grassy Mountain 260 0.26 68 1,652 0.29 486 1,911 0.29 554 Total 260 0.26 68 1,652 0.29 486 1,911 0.29 554 17 1.
All processing facilities and equipment related to the mining operations conducted by Amax have been removed from the site. 25 Power and Water As a result of Amax’s mine operation from 1986 to 1996, electrical power is provided to the property by power lines. Water is available from two deep wells located on the property.
All processing facilities and equipment related to the mining operations conducted by Amax have been removed from the site. 26 Power and Water As a result of Amax’s mine operation from 1986 to 1996, electrical power is provided to the property by power lines. Water is available from two deep wells located on the property.
For more information for mineral resource estimate, see Exhibit 96.1 section 11.8, the Technical Report Summary on the Sleeper Gold Project, Nevada, U.S.A. ("Sleeper TRS") prepared for the Company by QP, RESPEC Company LLC with an effective date of June 30, 2023.
For more information for mineral resource estimate, see Exhibit 96.2 section 11.8, the Technical Report Summary on the Sleeper Gold Project, Nevada, U.S.A. ("Sleeper TRS") prepared for the Company by QP, RESPEC Company LLC with an effective date of June 30, 2023.
Mine Type: Open Pit Heap Leach Commodity: Gold, Silver Mineralization Styles: Low Sulfidation, Vein Other: • Certain royalty interests have been granted with respect to the Sleeper Gold Project • A security interest in the Sleeper Gold Project has been granted in favor of the Convertible Note Holders (as defined below) Summary Gold Mineral Resources as of June 30, 2023 (1,2,4,9) : Measured Mineral Resources Indicated Mineral Resources Measured + Indicated Mineral Resources Inferred Mineral Resources Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) United States Grassy Mountain 3, 5, 21,153 0.017 363 12,902 0.030 392 34,055 0.022 755 1,151 0.037 42 Sleeper 6, 7, 8 5,403 0.016 85 174,535 0.010 1,812 179,938 0.011 1,897 132,176 0.009 1,214 Total 26,556 0.017 448 187,437 0.012 2,204 213,993 0.012 2,652 133,327 0.009 1,256 Summary of Silver Mineral Resources as of June 30, 2023( 1,2,4,9 ): Measured Mineral Resources Indicated Mineral Resources Measured + Indicated Mineral Resources Inferred Mineral Resources Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) United States Grassy Mountain 3, 5, 21,153 0.072 1,529 12,902 0.115 1,480 34,055 0.088 3,009 1,151 0.109 126 Sleeper 6, 7, 8 5,403 0.105 570 174,535 0.118 20,661 179,938 0.118 21,231 132,176 0.071 9,454 Total 26,556 0.079 2,099 187,437 0.118 22,141 213,993 0.113 24,240 133,327 0.071 9,580 16 1.
Mine Type: Open Pit Heap Leach Commodity: Gold, Silver Mineralization Styles: Low Sulfidation, Vein Other: • Certain royalty interests have been granted with respect to the Sleeper Gold Project • A security interest in the Sleeper Gold Project has been granted in favor of Sprott as holder of the Debenture Summary Gold Mineral Resources as of June 30, 2024 (1,2,4,9) : Measured Mineral Resources Indicated Mineral Resources Measured + Indicated Mineral Resources Inferred Mineral Resources Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) United States Grassy Mountain 3, 5, 21,153 0.017 363 12,902 0.030 392 34,055 0.022 755 1,151 0.037 42 Sleeper 6, 7, 8 5,403 0.016 85 174,535 0.010 1,812 179,938 0.011 1,897 132,176 0.009 1,214 Total 26,556 0.017 448 187,437 0.012 2,204 213,993 0.012 2,652 133,327 0.009 1,256 Summary of Silver Mineral Resources as of June 30, 2024( 1,2,4,9 ): Measured Mineral Resources Indicated Mineral Resources Measured + Indicated Mineral Resources Inferred Mineral Resources Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) United States Grassy Mountain 3, 5, 21,153 0.072 1,529 12,902 0.115 1,480 34,055 0.088 3,009 1,151 0.109 126 Sleeper 6, 7, 8 5,403 0.105 570 174,535 0.118 20,661 179,938 0.118 21,231 132,176 0.071 9,454 Total 26,556 0.079 2,099 187,437 0.118 22,141 213,993 0.113 24,240 133,327 0.071 9,580 16 1.
Work Completed by Paramount Since acquiring its Project interest in 2016, Paramount has conducted an exploration review of the available Project data, helicopter-borne aeromagnetic and radiometric and CSAMT ground geophysical surveys, drilling, Mineral Resource and Mineral Reserve estimation, baseline environmental studies, and mining studies.
Work Completed by Paramount Since acquiring the Grassy Mountain Project interest in 2016, Paramount has conducted an exploration review of the available project data, helicopter-borne aeromagnetic and radiometric and CSAMT ground geophysical surveys, drilling, Mineral Resource and Mineral Reserve estimation, baseline environmental studies, and mining studies.
General Gold price US$/oz 1,750 Silver price US$/oz 22.00 Mine life years 7.75 Total mill feed tons tons x 1,000 2,070 Production (gold) Mill head grade Au oz/ton 0.19 Mill recovery rate Au % 92.78% Total mill ounces recovered Au oz x 1,000 361.8 Total average annual production Au oz x 1,000 46.6 Production (silver) Mill head grade Ag oz/ton 0.28 Mill recovery rate Ag % 73.46% Total mill ounces recovered Ag oz x 1,000 424.8 Total average annual production Ag oz x 1,000 54.5 Operating Costs Mining cost US$/ton milled 67.29 Processing cost US$/ton milled 33.92 G&A cost US$/ton milled 16.57 Total operating costs US$/ton milled 117.78 Refining cost Au US$/oz 5.00 Refining cost Ag US$/oz 0.50 *Cash costs net of by-products US$/oz Au 680.97 **AISC net of by-products US$/oz Au 815.09 Capital Costs Initial capital US$ M 136.2 Sustaining capital US$ M 36.1 Closure costs US$ M 12.4 Financials(pre-tax) Pre-tax NPV, 5% US$ M 134.9 Pre-tax IRR % 24.22% Pre-tax Payback years 3.32 Financials(post-tax) Post-tax NPV, 5% US$ M 114.1 Post-tax IRR % 22.54% Post-tax Payback years 3.32 Permitting and Current Proposed Development Program Paramount expects to continue with both state and federal permitting activities for its proposed underground gold mine.
General Gold price US$/oz 1,750 Production (silver) Mill head grade Ag oz/ton 0.28 Mill recovery rate Ag % 73.46% Total mill ounces recovered Ag oz x 1,000 424.8 Total average annual production Ag oz x 1,000 54.5 Operating Costs Mining cost US$/ton milled 67.29 Processing cost US$/ton milled 33.92 G&A cost US$/ton milled 16.57 Total operating costs US$/ton milled 117.78 Refining cost Au US$/oz 5.00 Refining cost Ag US$/oz 0.50 *Cash costs net of by-products US$/oz Au 680.97 **AISC net of by-products US$/oz Au 815.09 Capital Costs Initial capital US$ M 136.2 Sustaining capital US$ M 36.1 Closure costs US$ M 12.4 Financials(pre-tax) Pre-tax NPV, 5% US$ M 134.9 Pre-tax IRR % 24.22% Pre-tax Payback years 3.32 Financials(post-tax) Post-tax NPV, 5% US$ M 114.1 Post-tax IRR % 22.54% Post-tax Payback years 3.32 Permitting and Current Proposed Development Program Paramount expects to continue with both state and federal permitting activities for its proposed underground gold mine.
The claims are located approximately 2 miles south of past producing Sleeper Gold Mine. The purchased claims carry a mineral production royalty based on a Net Smelter Returns (“NSR”) of one percent (1%). The purchased claims are without known mineral reserves. As of June 30, 2023, the net book value of the Sleeper Gold Property was approximately $28.1 million.
The claims are located approximately 2 miles south of past producing Sleeper Gold Mine. The purchased claims carry a mineral production royalty based on a Net Smelter Returns (“NSR”) of one percent (1%). The purchased claims are without known mineral reserves. As of June 30, 2024, the net book value of the Sleeper Gold Property was approximately $25.6 million.
Mine Type: Underground Commodity: Gold, Silver Mineralization Styles: Hot Spring Style, Low Sulfidation Epithermal Other: • Certain royalty interests have been granted with respect to the Grassy Mountain Project • A security interest in the Grassy Mountain Project has been granted in favor of the Convertible Note Holders (as defined below) Property: Sleeper Gold 15 Stage: Exploration Location: Nevada Ownership: 100% Titles and Mining Claims: 2474 unpatented lode claims (approximately 44,917 acres) Key Permit Conditions: BLM administered land.
Mine Type: Underground Commodity: Gold, Silver Mineralization Styles: Hot Spring Style, Low Sulfidation Epithermal Other: • Certain royalty interests have been granted with respect to the Grassy Mountain Project • A security interest in the Grassy Mountain Project has been granted in favor of Sprott as holder of the Debenture Property: Sleeper Gold Stage: Exploration 15 Location: Nevada Ownership: 100% Titles and Mining Claims: 2474 unpatented lode claims (approximately 44,917 acres) Key Permit Conditions: BLM administered land.
Mineral Resources potentially amenable to open pit mining methods are reported using a gold price of $1,800/oz (2022 - $1,750/oz), a silver price of $22/oz (2022 - $22/oz), a throughput rate of 30,000 tonnes/day (2022 - 30,000 tonnes/day), assumed metallurgical recoveries of 84.6% for Au (2022 - 72.7% for Au) and 52.3% for Ag (2022 - 28.2% for Ag), mining costs of $2.40/tonne mined (2022 - $2.00/tonne mined), heap leach processing costs of $3.08/tonne processed (2022 - $3.08/tonne processed), bio-leach processing costs of $8.52/tonne processed (2022 - $9.84/tonne processed), general and 29 administrative costs of $0.46/tonne processed (2022 - $0.46/tonne processed).
Mineral Resources potentially amenable to open pit mining methods are reported using a gold price of $1,800/oz, a silver price of $22/oz, a throughput rate of 30,000 tonnes/day, assumed metallurgical recoveries of 84.6% for Au and 52.3% for Ag, mining costs of $2.40/tonne mined, heap leach processing costs of $3.08/tonne processed, bio-leach processing costs of $8.52/tonne processed, general and administrative costs of $0.46/tonne processed.
As of June 30, 2023, the net book value of the Grassy Mountain Property was approximately $23.2 million. 21 Grassy Mountain Property Summary of Mineral Resources at the End of June 30, 2023 and June 2022 Note to Reader: Based on the assessment of the QPs and the Company it was determined that there were no material changes to the Grassy Mountain Property that required an updated Grassy TRS.
Grassy Mountain Property Summary of Mineral Resources at the End of June 30, 2024 and June 2023 Note to Reader: Based on the assessment of the QPs and the Company it was determined that there were no material changes to the Grassy Mountain Property that required an updated Grassy TRS.
The gold–silver precipitate will be dried in a mercury retort oven and then mixed with fluxes and smelted in a furnace to pour doré bars. Carbon will be re-activated in a 20 carbon regeneration kiln before being returned to the CIL circuit.
The gold–silver precipitate will be dried in a mercury retort oven and then mixed with fluxes and smelted in a furnace to pour doré bars. Carbon will be re-activated in a carbon regeneration kiln before being returned to the CIL circuit. CIL tails will be treated for cyanide destruction prior to pumping to the tailings storage facility (TSF) for disposal.
CIL tails will be treated for cyanide destruction prior to pumping to the tailings storage facility (TSF) for disposal. The installed power for the process plant will be 4,445 hp and the power consumption is estimated to be 72 kWh/ton processed. Raw water will be pumped from borehole wells to a raw-water storage tank.
The installed power for the process plant will be 4,445 hp and the power consumption is estimated to be 72 kWh/ton processed. Raw water will be pumped from borehole wells to a raw-water storage tank. Potable water will be sourced from the raw water tank and treated by a potable water treatment plant.
In this setting the paragenetic relationships of the differing mineralization styles are as follows: • Early – quartz-pyrite-marcasite stockwork; • Intermediate – medium-grade, silica-pyrite-marcasite cemented breccias localized on zones of structural weakness; • Late – high-grade, banded, quartz-adularia-electrum-(sericite) veins; and • Post – alluvial gold-silver deposits in Pliocene gravels. 27 Reclamation Paramount is responsible for managing the reclamation activities from the previous mine operations at the Sleeper Gold Mine as directed by the BLM and the Nevada State Department of Environmental Protection.
In this setting the paragenetic relationships of the differing mineralization styles are as follows: • Early – quartz-pyrite-marcasite stockwork; • Intermediate – medium-grade, silica-pyrite-marcasite cemented breccias localized on zones of structural weakness; 28 • Late – high-grade, banded, quartz-adularia-electrum-(sericite) veins; and • Post – alluvial gold-silver deposits in Pliocene gravels.
Potable water will be sourced from the raw water tank and treated by a potable water treatment plant. Gland water will be supplied from the raw-water tank. Process water will primarily consist of TSF reclaim water. Reagents will include lime, sodium cyanide, sodium hydroxide, copper sulfate, hydrochloric acid and sodium metabisulfite.
Gland water will be supplied from the raw-water tank. Process water will primarily consist of TSF reclaim water. Reagents will include lime, sodium cyanide, sodium hydroxide, copper sulfate, hydrochloric acid and sodium metabisulfite. A summary of the forecast project economics are as follows: Area Item Units LOM Total/Avg.
Mineral Resources comprised all model blocks at a 0.14 g Au/t cut-off (2022 - 0.137 g Au/t cut-off) for Oxide and Mixed, 0.17 g Au/t (2022 - 0.251 g Au/t) for Sulfide within an optimized pit; and 0.14 g Au/t (2022 - 0.137 g Au/t) for dumps. 3.
The estimate of mineral resources was done by RESPEC Company LLC in metric tonnes. All prices and costs are in US dollars. 2. Mineral Resources comprised all model blocks at a 0.14 g Au/t cut-off for Oxide and Mixed, 0.17 g Au/t for Sulfide within an optimized pit; and 0.14 g Au/t for dumps. 3.
The following map illustrates the claims subject to the royalty: 24 History of Previous Operations The Sleeper Gold Project includes a historic open pit mine (the “Sleeper Gold mine”) operated by AMAX Gold Inc. (“Amax”) from 1986 until 1996, which produced 1.66 million ounces of gold and 2.3 million ounces of silver.
Sprott holds Deeds of Trust over the Sleeper claims securing the Debenture. The following map illustrates the claims subject to the royalty: 25 History of Previous Operations The Sleeper Gold Project includes a historic open pit mine (the “Sleeper Gold mine”) operated by AMAX Gold Inc.
Rounding may result in apparent discrepancies between tonnes, grade, and contained metal content. Internal Controls - Sleeper Gold Property Paramount’s internal controls at the Sleeper project are designed to provide reasonable assurance that information and processes utilized in assessing its exploration results, as well as mineral resource and reserve estimation, and are reasonable and in line with industry best practices.
Gold and silver commodity prices were selected based on analysis of the three-year running average at the end of August 2023 for the mineral resources at June 30, 2023. 29 Internal Controls - Sleeper Gold Property Paramount’s internal controls at the Sleeper project are designed to provide reasonable assurance that information and processes utilized in assessing its exploration results, as well as mineral resource and reserve estimation, and are reasonable and in line with industry best practices.
The Company expects to file a revised RCE in the second half of calendar 2023 with the BLM. The revised RCE will incorporate the significant reclamation work that has been completed by the Company over the past several years.
The revised RCE will incorporate the significant reclamation work that has been completed by the Company over the past several years. The Company expects that the revised RCE will reduce the overall expenditures required to fully reclaim the project site.
Removed
A summary of the forecast project economics are as follows: Area Item Units LOM Total/Avg.
Added
Sprott Private Resource Streaming and Royalty (US Collector), LP Debenture Effective as of December 27, 2023, Paramount and its wholly owned subsidiary Calico, entered into a Secured Royalty Convertible Debenture (the “Debenture”) in favor of Sprott Private Resource Streaming and Royalty (US Collector), LP, as agent for itself and certain affiliates (collectively, “Sprott”).
Removed
The estimate of mineral resources was done by RESPEC Company LLC in metric tonnes. All price and cost are in US dollars. 2.
Added
Pursuant to the Debenture, Sprott has advanced $15,000,0000 to Paramount, which will be used to fund the continued permitting of the proposed Grassy Mountain Gold Mine in eastern Oregon, for general corporate purposes and has been used for the repayment of the Company’s debt, including its 2019 secured convertible notes and its bridge promissory note in favor of Seabridge Gold Inc. 19 The Debenture carries an interest rate of 10% per annum, which, at Paramount’s discretion, is payable in cash or shares of its common stock at a 7% discount to the 10-day VWAP from the scheduled date of payment of interest.
Removed
Gold and silver commodity prices were selected based on analysis of the three-year running average at the end of August 2023 for the mineral resources at June 30, 2023. 7.
Added
The Debenture may be repaid in cash or through the issuance of the Royalty (defined below) at the earlier of the commencement of commercial production or five (5) years from the Debenture closing date.
Removed
Measured and indicated gold and silver resources were not defined for year ended 2022 and increased as a result of reclassifications and completion of database verification; inferred gold resources decreased by 99% from the previous year and inferred silver resources decreased by 159% due to the reclassifications that resulted from resources modeling. 8.
Added
The Debenture is convertible into a gross revenue royalty (the “Royalty) of 4.75% of the gold and silver produced from the proposed Grassy Mountain Gold Mine proportionate to the final amount of the funds that have been advanced upon reaching commercial production.
Added
If a Royalty is issued, Paramount has the option to buy back 50% of the Royalty by paying either $11.25 million on the second (2 nd ) anniversary of the Royalty or $12.375 million on the third (3 rd ) anniversary.
Added
The Company’s obligations under the Debenture are secured by a pledge of the assets of the Company and its subsidiaries, including without limitation by deeds of trust with respect to the Grassy Mountain project and the Company’s Nevada property, Sleeper.
Added
Right of First Refusal In connection with the Debenture, Paramount and Calico entered into a Mining ROFR Option to Purchase Agreement (the “ROFR”) in favor of Sprott.
Added
Pursuant to the ROFR, we have granted to Sprott the right of first refusal with respect to any proposed grant, sale or issuance to any third party of a stream, royalty or similar interest (a “Mineral Interest”) based on or with reference to future production from the proposed Grassy Mountain gold and silver mine.
Added
If the cash equivalent value (with the value of any non-cash consideration of any third party offer (the “Third Party Consideration”) exceeds $60,000,000 then Sprott shall have the right to buy a percentage interest of the Mineral Interest equal to the percentage that $60,000,000 is to the Third Party Consideration (the “Proportionate Mineral Interest”).
Added
If the Third Party Consideration equals or is less than $60,000,000, Sprott shall have the right to buy the entire Mineral Interest subject to such third party offer.
Added
The ROFR shall terminate on the date which is the earlier of (i) the seventh (7th) anniversary of the ROFR; (ii) the closing of one or more purchase transactions between us and Sprott in respect of Mineral Interests for an aggregate purchase price of $60,000,000 upon the exercise by Sprott of its rights pursuant to the ROFR; and (iii) the closing of a purchase transaction between us and third party in respect of a Mineral Interest for a purchase price in excess of $60,000,000 where Sprott does not exercise its right of first refusal pursuant to the ROFR.
Added
In November of 2023, DOGAMI issued a Notice to Proceed which deemed Paramount's CPA complete and initiated the preparation of the State of Oregon's Environmental Evaluation. In March of 2024, the BLM issued the Notice of Intent which initiated the EIS process under the National Environmental Policy Act.
Added
General Gold price US$/oz 1,750 Silver price US$/oz 22.00 Mine life years 7.75 Total mill feed tons tons x 1,000 2,070 Production (gold) Mill head grade Au oz/ton 0.19 Mill recovery rate Au % 92.78% Total mill ounces recovered Au oz x 1,000 361.8 Total average annual production Au oz x 1,000 46.6 21 Area Item Units LOM Total/Avg.
Added
As of June 30, 2024, the net book value of the Grassy Mountain Property was approximately $23.2 million.
Added
(“Amax”) from 1986 until 1996, which produced 1.66 million ounces of gold and 2.3 million ounces of silver.
Added
Note to Reader: Based on the assessment of the QPs and the Company it was determined that there were no material changes to the Sleeper Gold Property that required an updated Sleeper Technical Report Summary.
Added
Reclamation Paramount is responsible for managing the reclamation activities from the previous mine operations at the Sleeper Gold Mine as directed by the BLM and the Nevada State Department of Environmental Protection ("NDEP").
Added
For the fiscal year ended June 30, 2024, at the request of NDEP, the Company completed the conversion of several collection ponds to evaporation cells and as a result the Company expects to file a revised RCE in the second half of calendar 2024 with the BLM.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+1 added−0 removed2 unchanged
Biggest changeDIVIDENDS We currently do not anticipate paying cash dividends for the foreseeable future. RECENT SALE OF UNREGISTERED SECURITIES AND USE OF PROCEEDS During the year-ended June 30, 2023, we issued 799,613 shares of common stock for payment of interest accrued and owing on our outstanding 2019 Convertible Notes.
Biggest changeRECENT SALE OF UNREGISTERED SECURITIES AND USE OF PROCEEDS During the year-ended June 30, 2024, we issued 1,111,571 shares of common stock for payment of interest accrued and owing on our outstanding 2019 Convertible Notes and 2,031,232 shares of common stock for payment of interest accrued and owing on our outstanding Secured Royalty Convertible Debenture.
In issuing the foregoing securities, we relied on the exemptive provisions of Section 4(a)(2) of the Securities Act and Rule 506 thereunder. EQUITY COMPENSATION PLAN Set out below is information as of June 30, 2023 with respect to compensation plans (including individual compensation arrangements) under which our equity securities are authorized for issuance under our Equity Incentive Plan.
In issuing the foregoing securities, we relied on the exemptive provisions of Section 4(a)(2) of the Securities Act and Rule 506 thereunder. EQUITY COMPENSATION PLAN Set out below is information as of June 30, 2024 with respect to compensation plans (including individual compensation arrangements) under which our equity securities are authorized for issuance under our Equity Incentive Plan.
Equity Compensation Plan Information Plan Category Number of securities to be issued upon exercise of outstanding options and RSUs Weighted- average exercise price per share of outstanding options and RSUs Number of securities remaining available for future issuance under equity compensation plans Equity compensation plans approved by security holders 2,385,500 $ 1.05 423,000 Equity compensation plans not approved by security holders — $ — — TOTAL 2,385,550 423,000 As of June 30, 2023, 980,500 restricted share units ("RSUs") were outstanding and 1,405,000 stock options were outstanding under our Equity Incentive Plans to acquire 2,385,500 Common Shares. 32 Item 6. [ Reserved].
Equity Compensation Plan Information Plan Category Number of securities to be issued upon exercise of outstanding options and RSUs Weighted- average exercise price per share of outstanding options and RSUs Number of securities remaining available for future issuance under equity compensation plans Equity compensation plans approved by security holders 3,130,000 $ 1.05 1,094,000 Equity compensation plans not approved by security holders — $ — — TOTAL 3,130,000 1,094,000 As of June 30, 2024, 1,725,000 restricted share units ("RSUs") were outstanding and 1,405,000 stock options were outstanding under our Equity Incentive Plans to acquire 3,130,000 Common Shares. 32 Item 6. [ Reserved].
High Low Year Ended June 30, 2023 First Quarter $ 0.49 $ 0.28 Second Quarter $ 0.42 $ 0.29 Third Quarter $ 0.43 $ 0.29 Fourth Quarter $ 0.42 $ 0.24 Year Ended June 30, 2022 First Quarter $ 1.02 $ 0.76 Second Quarter $ 0.91 $ 0.65 Third Quarter $ 1.10 $ 0.53 Fourth Quarter $ 0.72 $ 0.45 HOLDERS As of September 14, 2023, there were 154 registered shareholders of our common stock.
High Low Year Ended June 30, 2024 First Quarter $ 0.35 $ 0.27 Second Quarter $ 0.42 $ 0.27 Third Quarter $ 0.42 $ 0.30 Fourth Quarter $ 0.69 $ 0.40 Year Ended June 30, 2023 First Quarter $ 0.49 $ 0.28 Second Quarter $ 0.42 $ 0.29 Third Quarter $ 0.43 $ 0.29 Fourth Quarter $ 0.42 $ 0.24 HOLDERS As of September 14, 2024, there were 109 registered shareholders of our common stock.
Added
DIVIDENDS We currently do not anticipate paying cash dividends for the foreseeable future.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

27 edited+10 added−16 removed17 unchanged
Biggest changeHistorically, we have been successful in accessing capital through equity and debt financing arrangements or by the sale of royalties on its mineral properties, no assurance can be given that additional financing will be available to it in amounts sufficient to meet its needs, or on terms acceptable to the Company.
Biggest changeSubsequent to September 26, 2024, the Company expects to fund operations as follows: • Existing cash on hand and working capital. • The existing ATM with Cantor Fitzgerald & Co. and A.G.P/Alliance Global Partners. • Insurance proceeds to fund reclamation and environmental obligations at its Sleeper Gold Project. • Equity financings and sale of royalties. 35 Historically, we have been successful in accessing capital through equity and debt financing arrangements or by the sale of royalties on our mineral properties, no assurance can be given that additional financing will be available to it in amounts sufficient to meet our needs, or on terms acceptable to the Company.
The Company prepares estimates of the timing and amounts of expected cash flows and ongoing reclamation expenditures are charged against the 36 ARO as incurred to the extent they relate to the ARO. Significant judgments and estimates are made when estimating the fair value of ARO.
The Company prepares estimates of the timing and amounts of expected cash flows and ongoing reclamation expenditures are charged against the ARO as incurred to the extent they relate to the ARO. Significant judgments and estimates are made when estimating the fair value of ARO.
Comparison of Operating Results for the year ended June 30, 2023 as compared to June 30, 2022 Results of Operations We did not earn any revenue from mining operations for the years ended June 30, 2023 and 2022. During the year ended June 30, 2023, we completed various activities and milestones as described above in operating highlights.
Comparison of Operating Results for the year ended June 30, 2024 as compared to June 30, 2023 Results of Operations We did not earn any revenue from mining operations for the years ended June 30, 2024 and 2023. During the year ended June 30, 2024, we completed various activities and milestones as described above in operating highlights.
The following discussion updates our outlook and plan of operations for the foreseeable future. It also analyzes our financial condition and summarizes the results of our operations for the years ended June 30, 2023 and 2022 and compares each year’s results to the results of the prior year.
The following discussion updates our outlook and plan of operations for the foreseeable future. It also analyzes our financial condition and summarizes the results of our operations for the years ended June 30, 2024 and 2023 and compares each year’s results to the results of the prior year.
The main uses of cash were comprised of the following material amounts: • Cash used to fund our operations, which included general and administration expenses, land holding costs, exploration and development programs at our mineral properties, of $5,252,332.
The main uses of cash were comprised of the following material amounts: • Cash used to fund our operations, which included general and administration expenses, land holding costs, exploration and development programs at our mineral properties, of $5,409,347.
Our financial statements are affected by the accounting policies used and the estimates and assumptions made by management during their preparation. Management believes the Company’s critical accounting policies are those related to mineral property acquisition costs, exploration and development cost, derivative accounting and foreign currency translation.
Our financial statements are affected by the accounting policies used and the estimates and assumptions made by management during their preparation. Management believes the Company’s critical accounting policies are those related to mineral property acquisition costs, exploration and development costs and debt and derivative liability accounting.
We anticipate our twelve-month cash expenditures for our fiscal year ending June 30, 2024 to be as follows: • $4.1 million on corporate, land claim maintenance and general expenses For discretionary exploration and development, subject to available cash on hand and additional share issuances, we are budgeting the following amounts: • $3.9 million on the Grassy Mountain Project state and federal permitting activities • $0.15 million on the Sleeper Gold Project • $2.6 million for E-Cell Conversions at the Sleeper Gold Project 35 For the planned reclamation activities required by state and federal regulators at Sleeper, the Company expects that these expenditures will be reimbursed by insurance proceeds.
We anticipate our twelve-month cash expenditures for our fiscal year ending June 30, 2025 to be as follows: • $4.0 million on corporate, land claim maintenance and general expenses For discretionary exploration and development, subject to available cash on hand and additional share issuances, we are budgeting the following amounts: • $1.8 million on the Grassy Mountain Project state and federal permitting activities For the planned reclamation activities required by state and federal regulators at Sleeper, the Company expects that these expenditures will be reimbursed by insurance proceeds.
In the event that we are unable to obtain additional capital or financing, our operations, exploration and development activities will be significantly adversely affected. The continuation of the Company as a going concern is dependent on having sufficient capital to maintain our operations and to repay debt which become due in November 2023 and September 2024.
In the event that we are unable to obtain additional capital or financing, our operations, exploration and development activities will be significantly adversely affected. The continuation of the Company as a going concern is dependent on having sufficient capital to maintain our operations.
For any interest that accrues and is owing on the outstanding convertible debt, the Company expects to elect to pay the semi-annual interest payment in shares of its Common Stock.
For any interest that accrues and is owing on the outstanding Debenture, the Company expects to elect to pay the quarterly interest payment in shares of its Common Stock.
Off-Balance Sheet Arrangements We are not currently a party to, or otherwise involved with, any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, or capital resources.
Changes in these inputs could result in significant adjustments to the fair value of our derivatives and may impact our financial results. 36 Off-Balance Sheet Arrangements We are not currently a party to, or otherwise involved with, any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, or capital resources.
In general, these expenses which include travel, investor relations, office expenses and information technology costs remained stable from the prior year comparable period. Asset Retirement Obligation For the year ended June 30, 2023, the Company's asset retirement obligation for the Sleeper Gold Project decreased to $4,436,902 from $4,475,270 from the prior year ended June 30, 2022.
The decrease is mostly due to lower insurance expenses. In general, these expenses include travel, investor relations, office expenses and information technology costs. Asset Retirement Obligation For the year ended June 30, 2024, the Company's asset retirement obligation for the Sleeper Gold Project decreased to $2,270,288 from $4,436,902 from the prior year ended June 30, 2023.
Liquidity and Capital Resources Operating, Investing and Financing Activities At June 30, 2023, we had cash and cash equivalents of $824,920 compared to $2,484,156 as at June 30, 2022. In May 2020, the Company established an “at the market” equity offering program (“ATM”) with Cantor Fitzgerald & Co. and Canaccord Genuity LLC to proactively increase financial flexibility.
Liquidity and Capital Resources Operating, Investing and Financing Activities At June 30, 2024, we had cash and cash equivalents of $5,423,059 compared to $824,920 as at June 30, 2023. In May 2024, the Company continued with an established “at the market” equity offering program (“ATM”) with Cantor Fitzgerald & Co. and 34 A.G.P/Alliance Global Partners to proactively increase financial flexibility.
Professional fees included legal, advisory and consultant expenses incurred on corporate and operational activities on a period-by-period basis. For the year ended June 30, 2023, general and administration expenses decreased by 2% to $774,817 from $790,668 in the prior year.
The decrease is due to one-time consulting and legal fees incurred over the previous period. Professional fees included legal, advisory and consultant expenses incurred on corporate and operational activities on a period-by-period basis. For the year ended June 30, 2024, general and administration expenses decreased by 11% to $688,537 from $774,817 in the prior year.
In addition to cash used in operating activities, the Company used and received cash as follows: • Cash used to purchase mining claims and increase reclamation bonds of $126,700; • Cash received from equity financings and issuance of note payable of $3,719,796.
In addition to cash used in operating activities, the Company used and received cash as follows: • Cash used to purchase mining claims and increase reclamation bonds of $100,000; • Cash received from equity financings and issuance of note payable of $10,107,486 net of debt repayments and debt issuance costs.
Other normal course of business activities included filing annual mining claim fees with the BLM, reclamation work at the Sleeper mine site and on-going reviews of its mining claims were completed. Net Loss Our net loss for the year ended June 30, 2023 was $6,450,531 compared to a net loss of $7,837,316 in the previous year.
Other normal course of business activities included filing annual mining claim fees with the BLM and reclamation work at the Sleeper mine site. Net Loss Our net loss for the year ended June 30, 2024 was $8,056,445 compared to a net loss of $6,450,531 in the previous year. The increase of approximately 25% is fully described below.
The decrease of approximately 18% is fully described below. We will continue to incur losses for the foreseeable future as we continue with our planned exploration and development programs. 33 Expenses Exploration, Development and Reclamation and Land Holding Costs For the year ended June 30, 2023, exploration and development expenses were $2,595,709 compared to $4,436,266 in the prior year.
We will continue to incur losses for the foreseeable future as we continue with our planned exploration and development programs. 33 Expenses Exploration, Development and Reclamation and Land Holding Costs For the year ended June 30, 2024, exploration and development expenses were $2,061,618 compared to $2,423,556 in the prior year.
This represents a decrease of 41% or $1,840,557 which was mainly due to the Company completing several exploration and development activities in 2023 at both its Oregon and Nevada based properties. Expenses related to our exploration or development activities are generally not comparable from period to period as activities will vary based on several factors.
This represents a decrease of 15% or $361,938 which was mainly due to the Company focusing on permitting activities at Grassy Mountain and not performing significant exploration activity at the Sleeper Gold Project. Expenses related to our exploration or development activities are generally not comparable from period to period as activities will vary based on several factors.
Operating Highlights: During the fiscal year-ended June 30, 2023, the Company conducted several exploration programs and continued with its permitting at its Grassy Mountain Project. Highlights include: • The Oregon State Technical Review Team ("TRT") accepted the Cultural Resources final baseline data report ("BDR") as complete.
Operating Highlights: During the fiscal year-ended June 30, 2024, the Company conducted several exploration programs and continued with its permitting at its Grassy Mountain Project.
Paramount’s current business plan requires working capital to fund non-discretionary expenditures for its exploration and development activities on its mineral properties, mineral property holding costs and general and administrative expenses. It also requires approximately $6.0 million in capital to repay the 2019 convertible notes and the note payable to Seabridge which become due in September 2024 and November 2023 respectively.
Paramount’s current business plan requires working capital to fund non-discretionary expenditures for its exploration and development activities on its mineral properties, mineral property holding costs and general and administrative expenses.
At Grassy Mountain the Company continued with permitting activities with state and federal permitting agencies and completed a TRS on the property. These expenses totaled $1,466,402.
For the year ended June 30, 2023, at Grassy Mountain the Company continued with permitting activities with state and federal permitting agencies and completed a TRS on the property. These expenses totaled $1,466,402. At Sleeper, the Company has re-assayed historical drill holes, digitized and re-verified its geological database and completed a TRS on the property for expenses totaling $957,154.
The increase primarily reflects higher equity based compensation recorded in the current year compared to the previous comparable year. Included in the salary and benefits expense amount for the year ended June 30, 2023 and 2022 was non-cash stock based compensation of $317,762 and $259,670 respectively.
Included in the salary and benefits expense amount for the year ended June 30, 2024 and 2023 was non-cash stock based compensation of $225,866 and $317,762 respectively. Directors’ Compensation For the year ended June 30, 2024, directors’ compensation of $199,590 increased from $143,192 from the prior year ended June 30, 2023.
For the year ended June 30, 2023, land holding costs decreased by $7,865 or by 1% from the prior year of $640,349 to $632,484. The decrease is primarily due to an decrease in the professional fees incurred to file and maintain the mining claims with the BLM and respective counties.
The increase is primarily due to an increase in the professional fees incurred to file and maintain the mining claims with the BLM and respective counties. Salaries and Benefits For the year ended June 30, 2024, salary and benefits were $1,505,912 compared to $1,238,895 in the prior year. This represents an increase of 22% or $267,017.
During the fiscal year ended June 30, 2023 the Company issued 6,996,054 shares (2022- 7,766,388 shares) for net proceeds of $2,219,796 (2022 -$6,119,954) under the program. Subsequent to the year ended June 30, 2023, the Company sold 3,515,257 shares under the program for gross proceeds of $1,130,430.
During the fiscal year ended June 30, 2024, the Company issued 6,379,754 shares (2023- 6,996,054 shares) for net proceeds of $1,923,120 (2023 -$2,219,796) under the program. During the month of December 2023, the Company entered into a Debenture in favor of Sprott.
Professional Fees and General and Administration For the year ended June 30, 2023, professional fees were $377,822 compared to $130,765 in the prior year. This represents an increase of 189% or $247,057.
The increase of 39% or $56,398 is due to higher annual cash retainers and higher equity based compensation recorded in the current year-ended June 30, 2024. Professional Fees and General and Administration For the year ended June 30, 2024, professional fees were $337,628 compared to $377,822 in the prior year. This represents a decrease of 11% or $40,194.
The work to complete the ponds are expected to be completed in the second half of calendar year 2023 and the 34 costs are expected to be reimbursed by the insurance policy held by the Company for government mandated reclamation at the Sleeper Gold Project.
The settlements were a result of the Company completing pond conversions as required by NDEP and the costs were reimbursed by the insurance policy held by the Company for government mandated reclamation at the Sleeper Gold Project.
Salaries and Benefits For the year ended June 30, 2023, salary and benefits increased by 4% or by $42,593 from the prior year to $1,238,895. Salary and benefits are comprised of cash and stock-based compensation of the Company’s executive and corporate administration teams.
Salary and benefits are comprised of cash and stock-based compensation of the Company’s executive and corporate administration teams. The increase reflects increases in base salaries, higher cash bonuses netted against lower equity based compensation recorded in the current year compared to the previous comparable year.
The net decrease of $38,368 was the result of settlements of $120,001 plus a downward revision in estimate of $364,612 offset by current year accretion of $446,245. In the prior fiscal year, our estimate was based on proposals received to complete the pond conversions from third party contractors.
The net decrease of $2,166,614 was the result of settlements of $2,524,553 plus a downward revision in estimate of $84,295 offset by current year accretion of $442,234.
Removed
All required BDRs have been accepted as complete by the TRT and is a key condition in deeming the Company's permit application as complete. • The Federal Bureau of Land Management ("BLM") has accepted the Plan of Operation ("PoO") for the proposed underground Grassy Mountain gold mine as complete.
Added
Highlights include: • The BLM filed the Notice of Intent in the Federal Registry, initiating the preparation of an Environmental Impact Statement in compliance with the National Environmental Policy Act process for the proposed Grassy Mountain Gold mine. • Paramount closed a $15 million financing with Sprott through the issuance of a Debenture.
Removed
With completeness, the BLM will issue a Notice of Intent which initiates the Environmental Impact Statement ("EIS") process under the National Environment Policy Act. • The Company received the permit from the U.S. Forest Service to drill its Bald Peak Project in Mineral County, Nevada. • The Oregon State TRT accepted and approved both the geo-chemistry and groundwater BDRs.
Added
The proceeds of the Debenture will be used to fund the continued permitting of the proposed Grassy Mountain Gold Mine and general corporate purposes.
Removed
Both BDRs are required to be approved in order for the State of Oregon to determine, along with other application information, that Company's submitted Consolidated Permit Application (the “CPA”) is complete.
Added
It was also used to repay the Company's outstanding debt. • The State of Oregon issued a Notice to Proceed with the permitting and preparation of draft permits. • The State of Oregon's Technical Review Team determined that Paramount's Consolidated Permit Application for the Grassy Mountain Project is complete.
Removed
As of June 30, 2023, the completeness determination has not been made by the State of Oregon. • The TRT approved the Environmental Evaluation ("EE") outline which allows the State of Oregon's contracted consultant to begin its work on EE in advance to the CPA being deemed complete. • Completed new technical report summary("TRS") for the Sleeper Gold Property under Item 1300 of Regulation S-K.
Added
At Grassy Mountain, the Company continued with permitting activities with state and federal permitting agencies. These expenses totaled $1,613,551. At Sleeper, exploration activities included various activities including general site maintenance and activities to keep the mining claims in good standing. Total exploration expenses at Sleeper were $448,067.
Removed
At Sleeper, the Company has re-assayed historical drill holes, digitized and re-verified its geological database, completed a TRS on the property and redesigned its E-cell pond conversion plans for upcoming reclamation work for expenses totaling $1,129,307.
Added
For the year ended June 30, 2024, reclamation expenses at the Sleeper Gold Project were $2,605,799 compared to $172,153 in the prior year. This represents an increase of 1414% or $2,433,646.
Removed
For the year ended June 30, 2022, at Grassy Mountain, the Company continued with the permitting process with the State of Oregon and the BLM and submitted modified permit applications and at our Frost Property completed a drill program. Total exploration and development expenses at Grassy Mountain and Frost Project during the year that were $2,859,348.
Added
A significant amount of these reclamation expenses were related to the Company completing the conversion of several historical collection ponds at the past producing mine site to E-Cell conversion ponds. For the year ended June 30, 2024, land holding costs increased by $15,013 or by 2% from the prior year of $632,484 to $647,497.
Removed
At Sleeper, the Company completed a small drill program to test zones of mineralization and at its Bald Peak Project conducted rock surface sampling, completed a geophysical survey and planned for a future exploratory drill program. We also incurred expenses related to the reclamation program at the Sleeper Project.
Added
Pursuant to the Debenture, Sprott advanced $15,000,000 to Paramount, which will be used to fund the continued permitting of the proposed Grassy Mountain Gold Mine and for general corporate purposes. Proceeds from the Debenture were also used for the repayment of the Company’s outstanding 2019 secured convertible notes and its bridge promissory note in favor of Seabridge Gold Inc.
Removed
These reclamation expenses are reimbursed from an insurance policy the Company holds related to the closure and reclamation of the past producing Sleeper mine. Total exploration and reclamation expenses at our Nevada based properties during that year were $1,576,918.
Added
Convertible debt and derivative liabilities We account for the royalty convertible debenture in accordance with Accounting Standards Codification ("ASC") 815, Derivatives and Hedging. The embedded conversion features are assessed to determine whether they meet the criteria for separate accounting as derivatives.
Removed
Directors’ Compensation For the year ended June 30, 2023, directors’ compensation increased by 26% or by $29,475 from the prior year ended June 30, 2022. The decrease is due to the stock-based compensation recorded in the current year-ended June 30, 2023 compared to the prior year ended June 30, 2022.
Added
If so, they are bifurcated and recorded at fair value with changes in fair value recognized in our Statement of Operations and the remaining value allocated to the royalty convertible debenture net the unamortized debt issuance costs.
Removed
The increase was due to several factors including the timing of the recording of the audit fees for the fiscal year ended June 30, 2022 after engaging the Company's new auditor, higher auditor quarterly review expenses and incurring one-time consulting and legal fees in the period.
Added
The determination of fair value involves the use of estimates, assumptions, and valuation models, including but not limited to discounted cash flow analysis and option pricing models. These estimates and assumptions may include, but are not limited to, future interest rates, volatility of gold and silver prices, and credit spreads.
Removed
During the current fiscal year, the company received several new bid proposals to complete the work and the winning bids for the conversions were lower than the previous proposals.
Removed
It also entered into an an amendment to its 2019 Convertible Notes with a majority of the note holders, to extend the maturity date of the 2019 Convertible Notes to be the earlier of (i) September 30, 2024 or (ii) the date of funding of the transaction contemplated by that certain non-binding term sheet by an between the Company and Sprott Resource and Streaming Royalty Corp.
Removed
In December 2022, the Company issued the Note to Seabridge, an entity affiliated with the Chairman of our Board of Directors, Rudi Fronk, and an owner of approximately 5.5% of our outstanding common stock, pursuant to which the Company may borrow, in one or more advances, the principal amount of up to $1,500,000.
Removed
The Loan bears interest at a per annum rate of 12%, payable upon maturity or prepayment, and matures on September 30 2023. At the year ended June 30, 2023, the Company had borrowed $1,500,000 from Seabridge.
Removed
Subsequent to the year ended June 30, 2023, the Company and Seabridge entered into an agreement to extend the maturity date of the Note to Seabridge to November 30, 2023 and increase the applicable annual interest rate to 13%.
Removed
Subsequent to September 25, 2023, the Company expects to fund operations as follows: • Existing cash on hand and working capital. • The existing ATM with Cantor Fitzgerald & Co. and Canaccord Genuity LLC. • Insurance proceeds to fund reclamation and environmental obligations at its Sleeper Gold Project. • Other debt, equity financings and sale of royalties.

Other PZG 10-K year-over-year comparisons