PMI Gold Corporation Announces C$100
Million Equity Financing
Gold
Corporation (TSXV:PMV, ASX:PVM, Frankfurt:PN3N.F) (the "Company") is
pleased to announce that in connection with its previously announced overnight
marketed public offering ("Offering") of common shares ("Common
Shares"), it has today entered into an underwriting agreement with a
syndicate of underwriters led by Clarus Securities
Inc. and RBC Capital Markets as joint bookrunners and
co-lead underwriters, and including Canaccord Genuity Corp., Euroz Securities
Limited, GMP Securities L.P. and Raymond James Ltd. (collectively,
the "Underwriters") to sell 119,050,000 Common Shares of the Company
at a price of C$0.84 per share for gross proceeds of C$100,002,000. In
addition, the Company has granted the Underwriters an over-allotment option to
purchase up to that number of additional Common Shares equal to 15% of the
Common Shares sold pursuant to the Offering, exercisable at any time up to 30
days after the closing of the Offering.
The
Company plans to use the net proceeds of the Offering to fund the development
of the Company's Obotan Gold Project in accordance
with its definitive feasibility study, for Ghana exploration
activities and for general and administrative expenses.
The
Offering is subject to customary conditions and receipt of required regulatory
approvals, including the approval of the TSX Venture Exchange, as well as
shareholder approval by application of certain rules of the Australian
Securities Exchange. The Common Shares will be offered
in Canada (other than Qu�bec) by short form prospectus, and
in Australia and the United States on a private placement
basis, and in other jurisdictions outside of Canada,Australia and the United States which
are agreed to by the Company and the Underwriters, where the Common Shares can
be issued on a private placement basis, exempt from any prospectus,
registration or other similar requirements. The Offering is expected to close
on or about November 13, 2012.
The
securities referred to in this news release have not, nor will they be,
registered under the United StatesSecurities Act
of 1933, as amended, and may not be offered or sold within the United
States or to, or for the account or benefit of, U.S. persons absent U.S.
registration or an applicable exemption from the U.S. registration
requirements. This release does not constitute an offer for sale of securities nor a solicitation for offers to buy any securities.
Collin
Ellison
On behalf of the Board,
Managing Director & CEO