C$7.5 Million Private Placement
Oct. 28, 2010 (Market News Publishing) --
PMI GOLD CORP ("PMV-V") - C$7.5 Million Private Placement
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
PMI Gold Corporation (the "Company" or "PMI Gold") has entered into an agreement with Cormark Securities Inc. on behalf of a syndicate of investment dealers including, Haywood Securities Inc., Salman Partners Inc. and M Partners Inc. (collectively, the "Agents") pursuant to which the Agents have agreed to sell approximately C$7.5 million of special warrants of the Company (the "Special Warrants") on a "best efforts" private placement basis (the "Offering"). The price per Special Warrant will be in Canadian dollars and will be determined by reference to the planned concurrent initial public offering in Australia (the "Australian IPO"). Each Special Warrant will entitle the holder to receive, without payment of any further consideration, one common share in the capital of the Company (a "Common Share"). Directors of the Company may participate in the Offering.
The Corporation will use its reasonable best efforts to file a preliminary short form prospectus and obtain a receipt for a final short form prospectus by December 22, 2010 for the purpose of qualifying the Common Shares issuable upon exercise of the Special Warrants for distribution to the public with the applicable regulatory authorities in each of the provinces of Canada where Special Warrants are sold. If such receipt for a final short form prospectus is not obtained by December 22, 2010 the Special Warrants will be exerciseable into 1.10 common shares instead of 1 common share, subject to acceptance by the Australian Securities Exchange.
The net proceeds of the Offering will be used for general corporate expenses and the continued exploration and development of PMI Gold's Obotan and Kubi gold projects in Ghana.
The Offering is expected to close on or about November 23, 2010 or such other date as mutually agreed upon by PMI Gold and the Agents.
The Agents will receive a cash commission equal to 6.0% of the gross proceeds of the Offering.
This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the Unites States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
Cautionary Information
This news release contains forward-looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectations implied by these forward-looking statements. We Seek Safe Harbour.
About PMI Gold
Mining analysts have recently stated that West Africa will soon become the World's second largest gold producing region after China, with Ghana by far the largest gold producer in West Africa. PMI Gold controls four previous operating mines on 85 kilometres of Ghana's major gold belts all located near the centre of near 200 million ounces of historical gold production and current resources. Our Kubi Gold Project adjoins the 60 million ounce AngloGold Ashanti Obuasi mine, the largest underground mine in West Africa with a 113 year, continuous mining history. At Obotan, where previous mining yielded 730,000 ounces of gold at a grade of 2.2 g/t, we recently announced a maiden +1 million ounce gold Mineral Resource estimate, and the commencement of an aggressive drilling campaign.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Capitalization Report for Pmi Gold Corp
Shares Issued: 252020060
Shares Escrow: 0
TEL: (604) 682-8089 PMI Gold Corporation
__________________________________________________ (c)2010 Market News Publishing Inc. All rights reserved. Toronto:(416)366-8881 Vancouver:(604)689-1101 Fax:(604)689-1106
1030000101NT21030001680-07523420101028
TEL: (888) 682-8089 Douglas MacQuarrie, President & CEO FAX: (604) 682-8094 E-mail: frram@aon.at PMI Gold Corporation Florian Riedl-Riedenstein Advisor to the Board Website: www.pmigoldcorp.com ________________ -----------
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