Fiscal agent appointed for Kubi Gold Project financing
09:00 EDT Tuesday, June 03, 2008
globeinvestor.com
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TSX Venture Exchange: PMV
US PMVGF.PK
Frankfurt: AOJMW7
Issued & Outstanding: 78,749,736
Fully Diluted: 98,712,327
VANCOUVER, June 3 /CNW/ - PMI Gold Corporation (TSX.V:PMV) announces that it has appointed Devitor AB of Stockholm, Sweden, as its corporate finance adviser. Devitor has undertaken to arrange a 5 year secured bond for US$ 65 million to finance the Kubi gold deposit to a producing mine. It is expected the bond will carry a similar rating to the sovereign one forGhana, namely B+.
Devitor has initiated a bookbuilding process designed to test investor interest, subject to a satisfactory rating. The preparation and assembly of data to facilitate this is underway. Finders fees, which may include bonus warrants, will be payable on closing. The financing is subject to regulatory approval.
The Company also reports the recently completed Preliminary Assessment study commissioned by PMI Gold on its 100% owned Kubi Gold Project inGhana, West Africa, and disclosed on April 10, 2008, has now been filed on SEDAR at sedar.com (or download via the link staff.goknet.net. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The report indicates that Kubi can be developed as a profitable underground mining operation with a pre-tax base case Internal Rate of Return (IRR) of 28%, and a Net Present Value (NPV) at a 10% discount rate, of US$38.6 million. Based on the findings of the Golder Associates Ltd. ('Golder') study, PMI Gold is now advancing Kubi toward a full feasibility study for production of up to 50,000 ounces of gold per year commencing Q1 2011, and at an expected average cash cost of production for the first five years of US$336 per ounce and a US$750 gold price.
PMI Gold now controls four previous operating mines on its 698 square kilometres of leases and concessions located along the prolific Ashanti and Asankrangwa gold belts inGhana . In addition to developing a mine at Kubi, PMI Gold has contracted Golder to prepare an initial resource estimate for the Nkran deposit at our Obotan Gold project.Ghana is Africa's second largest gold producer and has attracted over $7 billion in foreign direct investment into the minerals and mining sector over the last decade. Ghana is a destination of choice because of its long mining history, prospective resource base, reasonable taxation and stable government.
On behalf of the Board,
"Douglas R. MacQuarrie"
President & CEO
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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.
%SEDAR: 00005434E
For further information: Douglas R. MacQuarrie, President & CEO, Telephone: (604) 682-8089, Toll-Free: 1-888-682-8089, Facsimile: (604) 682-8094; or for European Investors: Florian Riedl-Riedenstein: Tel: 43-2774-28814, e-mail: frram@aon.at; or John Mullen: Tel: 41-522-428795, e-mail: John Mullen@bluewin.ch; Or visit the PMI Gold Corporation website at www.pmigoldcorp.com (in German: pmi.goldseiten.de) |
