Oct 30 2010
PMI Gold Corporation (TSX VENTURE:PMV) has announced that it has agreed upon the terms and pricing for its previously announced private placement of special warrants.
The Offering will consist of 10,715,000 Special Warrants at a price of $0.70 per Special Warrant for aggregate gross proceeds of approximately $7.5 million. Each Special Warrant will entitle the holder to receive, without payment of any further consideration, one common share in the capital of the Company (a "Common Share").
The Company will use its reasonable best efforts to file a preliminary short form prospectus and obtain a receipt for a final short form prospectus by December 22, 2010 for the purpose of qualifying the Common Shares issuable upon exercise of the Special Warrants for distribution to the public with the applicable regulatory authorities in each of the provinces of Canada where Special Warrants are sold. If such receipt for a final short form prospectus is not obtained by December 22, 2010, the Special Warrants will be exerciseable into 1.10 common shares instead of 1 common share, subject to regulatory approval.
The Offering is being led by Cormark Securities Inc. on behalf of a syndicate of underwriters including, Haywood Securities Inc., Salman Partners Inc. and M Partners Inc. The underwriters will receive a cash commission equal to 6.0% of the gross proceeds of the Offering.
The net proceeds of the Offering will be used for general corporate expenses and the continued exploration and development of PMI Gold's Obotan and Kubi gold projects in Ghana.
The Offering is expected to close on or about November 29, 2010 and is subject to certain conditions including, but not limited to, the completion of the Company's contemplated initial public offering in Australia, where Hartley's Limited is the solebroker, for gross proceeds of not less than A$27.5 million and receipt of all necessary approvals, including the approval of the TSX Venture Exchange.