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| Monday, October 15, 2007 PMI Gold Acquires Nevsun's Kubi Gold Project, Ghana
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October 15, 2007, Vancouver BC - PMI Gold Corporation (TSX/V:PMV) - Douglas MacQuarrie, President, announces that further to the Company's news release dated September 17, 2007 the Company has received TSX Venture Exchange approval and has closed the transaction with Nevsun Africa (Barbados) Ltd., ("Nevsun"), a wholly owned subsidiary of Nevsun Resources Ltd., of Canada, to purchase Nevsun's Kubi Gold Project, located 20 kilometres south of the AngloGold Ashanti Obuasi mine and 46 kilometres southeast of our Obotan project.
PMI Gold has issued 9,000,000 common shares to Nevsun at a deemed price of $0.30 per share. There is a four month hold period expiring February 13, 2008.
As a result of the above transaction, Nevsun has advised PMI that it will own 9,000,000 common shares (the "Shares"), representing approximately 11.6% of the Company's issued and outstanding share capital. Nevsun has further advised that it has no present intention of acquiring any additional securities of PMI.
The balance of the purchase price of US$3 million will be paid within 6 months of closing in cash and or additional shares, at PMI's option, subject to ensuring that any such additional issuance of shares does not increase Nevsun's ownership to 20% or more of the outstanding common shares of PMI. The purchase agreement also provides that for a period of two years Nevsun will vote the Shares in favour of any proposal made by management of PMI. However, Nevsun may sell any or all of the Shares at any time subject to PMI having a right to purchase Shares offered in excess of 500,000 per calendar month. In addition, the purchase agreement provides that Nevsun may name a nominee as a director of PMI.
On behalf of the Board,
"Douglas R. MacQuarrie"
Douglas R. MacQuarrie
President & CEO
For further information please contact:
Douglas R. 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: 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: http://pmi.goldseiten.de)
NOT FOR RELEASE OR DISTRIBUTION IN THE USA.
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.
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