PMI Gold Corporation Announces C$100 Million Equity Financing
07 October 2012 - 7:09AM
PR Newswire (Canada)
/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA AND
AUSTRALIA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES./ VANCOUVER, Oct. 10, 2012 /CNW/ - PMI Gold Corporation (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 Québec) 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 States
Securities 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 Forward-Looking Statements This
news release includes forward-looking statements or information.
Forward-looking statements or information involve risks,
uncertainties and other factors that could cause actual results,
performances, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking statement. All
statements other than statements of historical fact included in
this release, including, without limitation, statements regarding
the timing and use of proceeds of the Offering and the
completion of the Offering. There can be no assurance that
such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in
such statements or information. Important factors that could
cause actual results to differ materially from the Company's plans
or expectations include the actual results of marketing activities,
changes in gold prices; adverse general economic, market or
business conditions; regulatory changes; and other risks and
factors detailed herein and from time to time in the filings made
by the Company with securities regulators and stock exchanges,
including in the section entitled "Risk Factors" in the Company's
Annual Information Form dated September 25, 2012. Any
forward-looking statement or information only speaks as of the date
on which it was made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new
information, future events or otherwise. Although the Company
believes that the assumptions inherent in the forward-looking
statements are reasonable, forward-looking statements are not
guarantees of future performance and accordingly undue reliance
should not be put on such. 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:Rebecca Greco, Fig House
CommunicationsP. +1 (416) 822-6483E. fighouse@yahoo.comInvestor
Relations Australia:Nicholas Read/Paul Armstrong, Read CorporateP.
+61 8 9388 1474M. +61 419 929 046PMI Gold Corporation Contact
Canada:Marion McGrath, Corporate SecretaryP. +1 (604)
684-6264Toll-Free: 1 (888) 682-8089PMI Gold Corporation Contact
Australia:Collin Ellison, Managing Director & CEOP. +61 8 6188
7900or visit the PMI Gold Corporation website at
www.pmigoldcorp.com
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