| ||Fri Oct 29, 2010|
PMI Gold Corp. Announces Terms of Recently Announced Private Placement
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES
October 29, 2010 - Vancouver , BC - PMI Gold Corporation (TSX.V:PMV) ("PMI Gold" or "the Company") is pleased to announce it has agreed upon the terms and pricing for its previously announced private placement (the "Offering") of special warrants ("Special Warrants"). The Offering will consist of 10,715,000 Special Warrants at a price of $0.70 per Special Warrant for aggregate gross proceeds of approximately $7.5 million. 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").
The Company 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 exercisable into 1.10 common shares instead of 1 common share, subject to regulatory approval.
The Offering is being led by Cormark Securities Inc. on behalf of a syndicate of underwriters including, Haywood Securities Inc., Salman Partners Inc. and M Partners Inc. The underwriters will receive a cash commission equal to 6.0% of the gross proceeds of the Offering.
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 29, 2010 and is subject to certain conditions including, but not limited to, the completion of the Company's contemplated initial public offering in Australia, where Hartley's Limited is the sole broker, for gross proceeds of not less than A$27.5 million and receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
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.
On behalf of the Board,
"Douglas R. MacQuarrie"
President & CEO
For further information please contact:
Douglas MacQuarrie, President & CEO
Telephone: 1 (604) 682-8089 Toll-Free: 1 (888) 682-8089 Facsimile: 1 (604) 682-8094
or for European Investors: Florian Riedl-Riedenstein: Tel: 43-2774-28814, e-mail: firstname.lastname@example.org
Or visit the PMI Gold Corporation website at www.pmigoldcorp.com
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 (NI43-101 mineral resource estimate of 604,000 ounces @3.66 g/t gold Indicated; 315,000 ounces @1.88 g/t gold Inferred, see SEDAR) 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.
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