PMI Gold Corporation - Land Access Agreement
TSX Venture Exchange: PMV
Australian Securities Exchange: PVM
Frankfurt: PN3N.F
/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES/
VANCOUVER, Dec. 20, 2011 /CNW/ - PMI Gold Corporation ('PMI') is pleased to announce that it has completed an important agreement with the Anglican University College of Technology for the acquisition of property within the Abore-Abirem licence.
After the return of the leases (formerly held by Resolute Mining Limited) to the Ghanaian government, an area was set aside by the Government for the Anglican Church to set up a University. This property, which is adjacent to but outside of the Nkran deposit and open pit and includes former administration and accommodation buildings, has been acquired by PMI under this agreement.
The facilities will provide the basis for the future mine accommodation as well as the immediate accommodation for the ongoing exploration activities. The acquisition of these facilities should also simplify the EPA approval process for PMI's mining lease application.
The access agreement terms are for PMI to provide an initial USD500,000 payment which will allow PMI immediate access to all facilities and a later payment of $4.5 million to be paid at the time of the raising of the capital for the Obotan mining operations, or 30 September 2012, whichever is the earlier.
The Pre-feasibility Study capital cost estimate will incorporate an amount of $4.5 million for the final settlement for the cost of the future mine village and administration buildings.
This agreement is an important step in the development of the Obotan project and will allow the area to be used as a base for management of the project and accommodation within the licence area.
On behalf of the Board,
'Collin Ellison'
Managing Director & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
PMI Gold Corporation
CONTACT:
Investor Relations Canada: Investor Relations
Australia:
Rebecca Greco, Fig House Nicholas Read/Paul Armstrong, Read
Communications Corporate
P. +1 (416) 822-6483 P. +61 8 9388 1471
E. fighouse@yahoo.com M. +61 419 929 046
PMI Contact Canada: PMI Contact Australia:
Marion McGrath, Corporate Collin Ellison, Managing Director &
Secretary CEO
P. +1 (604) 684-6264 P. +61 8 6188 7900
Toll-Free: 1 (888) 682-8089
or visit the PMI Gold Corporation
website at www.pmigoldcorp.com