Paramount Gold and Silver (AMEX:PZG) Acquiring X-Cal Resources (TSE:XCL)

U.S. exploration company Paramount Gold and Silver (AMEX:PZG) (TSE:PZG) has been hunting for over a year for an acquisition that makes sense to them, and they have found it in Canadian-based gold exploration company X-Cal Resources (TSE:XCL), which they announced they have acquired in a straight stock deal for $30.4 million.

Paramount's existing projects are in Mexico, while the primary holding of X-Cal Resources is the Sleeper gold project in Nevada.

The newly merged company, assuming shareholder approval, will focus on getting the Sleeper project.

"They have a program to spend between $4 million and $10 million on that property over the next 18 months to bring it back to the point where it can be developed," said one source.

The Sleeper project has an estimated million ounces of gold in it.