PMI Ventures formalizes land deal with Ghana's Goknet
2003-01-20 06:57 PT - News Release
Mr. Arthur Fisher reports
PMI VENTURES LTD. SECURES GHANAIAN PROPERTY ACQUISITION
PMI Ventures has entered into a letter agreement with Goknet Mining Company Limited, a privately held Ghanaian corporation, to acquire up to 85 per cent of Goknet's interest in exploration concessions/applications covering a length of approximately 50 kilometres and an area of about 486 square kilometres along the axis of the Asankrangwa gold belt of southwestern Ghana.
The TSX Venture Exchange has accepted this agreement for filing. The exchange acceptance is to the consideration payable up to the second anniversary of the effective date of the agreement. The share consideration in the third year of the effective date of the agreement will be subject to further exchange review and acceptance.
In accordance with acceptance of the transaction by the exchange, the company completed the initial payment of $90,000 to Goknet on Jan. 17, 2003. The first tranche of shares pursuant to this agreement will be issued shortly.
Consideration for this acquisition will be 3.0 million shares of the company plus cash payments of approximately $260,000 (U.S.) over three years as follows:
upon approval by TSX Venture Exchange and company shareholders -- $90,000 cash payment and 500,000 common shares of PMI;
on first anniversary of approval by TSX Venture Exchange -- $100,000 (U.S.) cash payment and 500,000 common shares of PMI;
on second anniversary of approval by TSX Venture Exchange -- $100,000 (U.S.) cash payment and 750,000 common shares of PMI; and
on third anniversary of approval by TSX Venture Exchange -- 1.25 million common shares of PMI.
The company will also be required to complete the following expenditures on the properties to fulfill its option:
year one expenditure of $500,000 (U.S.);
year two expenditure of $1-million (U.S.); and
year three expenditure of $1.5-million (U.S.).
The company is now planning an initial exploration program comprising diamond drilling of the most prospective drill targets identified by earlier exploration programs.
WARNING: The company relies upon litigation protection for "forward-looking" statements. |
