www.pmigoldcorp.com
After 6 years of land acquisition and exploration in Ghana, Africa's #2 gold producer, PMI Gold is now focused on bringing its projects to near term production. PMI Gold controls 12 concessions covering 537 sq km -- in the heart of Ghana's major gold belts. Our holdings on the Asankrangwa gold belt alone are more than 70 km long -- the equivalent length of the entire Carlin Trend in Nevada -- and cover 3 past producing large scale mines and dozens of small historical operations.
PMI Gold announces $35 mln bought deal to raise funds for Obotan feasibility study
PMI Gold Corp (CVE:PMV)(ASX:PVM) said Wednesday it has agreed to a C$35 million bought-deal financing.
The syndicate of underwriters, which will be co-led by Clarus Securities and RBC Capital Markets, have agreed to buy 28 million common shares on a bought-deal underwritten basis and sell them at a price of C$1.25 each to the public.
PMI said it plans to use the net proceeds of the offering to fund its definitive feasibility study on its Obotan Gold project and for general corporate purposes.
The offering is subject to customary conditions and receipt of required regulatory approvals, including the approval of the TSX Venture Exchange.
The financing is expected to close around March 16, 2012.
In January, PMI Gold unveiled what it called "outstanding" results from its NI 43-101 compliant pre-feasibility study for its flagship Obotan gold project in Ghana, West Africa.
The study, which was done by GR Engineering Services Limited, outlined a post-tax net present value (NPV) of US$416.4 million, assuming a gold price of US$1,300 per ounce, a five percent discount rate and a contract mining scenario, the company said.
The internal rate of return (IRR) for the open pit design project was calculated at 31 percent after tax, with a 2.9 year payback period from the start of gold production.
Initial capital costs were estimated at US$183.5 million, excluding pre-strip mining costs of just over $68 million, for a project with an average annual gold production forecast of 205,600 ounces per year over an initial 11.2 year mine life.
Life-of-mine production was projected at 2.1 million recovered ounces of gold, at a cash cost of US$690.2 per ounce, including royalties of seven percent, refining costs and pre-strip mining.
The production scenario assumes a hard rock carbon-in-leach (CIL) plant capacity of 3.0 million tonnes of ore per year for 10 years, with capacity of up to 3.84 million tonnes per year for soft oxides.
PMI Gold said the strong economics of the project provide a solid base for the feasibility study that is already underway, and is targeted for completion by the end of June this year, paving the way for a development decision in the third quarter.
