PMI Gold Corporation
TSX VENTURE : PMV
FRANKFURT : PN3N
ASX : PVM

PMI Gold Corporation

July 09, 2012 12:23 ET

PMI Gold Corporation: Agreement to Purchase Contiguous Mining Lease With the Obotan Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2012) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

PMI Gold Corporation (TSX VENTURE:PMV)(FRANKFURT:PN3N)(ASX:PVM) is pleased to announce that its 100% wholly-owned subsidiary, Adansi Gold Company (Ghana) Limited ("Adansi") has entered into an agreement with Midras Mining Company Ltd ("Midras") to acquire the Datano Mining Lease which sits contiguous to the Company's flagship Obotan Gold Project in south-west Ghana (Figure 1).

The Midras concession covers an area of 50km2 and sits strategically south of the Nkran deposit providing PMI access to the extensions of the mineralised Nkran and Fromenda structures and the opportunity to develop additional oxide resource targets close to the Obotan Project. The concession was previously explored by Ashanti Gold Corporation and Kiwi Goldfields Limited where multiple targets associated with traversing lineaments were recognised within a 7km wide corridor of the Asankrangwa Gold Belt.

The lease area will also provide greater flexibility in the design of infrastructure within the Obotan Project Feasibility Study design, which is currently in progress.

The agreement allows for a purchase price of US$6 million and is contingent upon obtaining the approval of the sale and transfer of the Mining Lease to Adansi by the Ghana Minerals Commission and Minister of Lands, Forestry and Mines.

On behalf of the Board,

Collin Ellison, Managing Director & CEO

To view Figure 1 please click on the following link: http://media3.marketwire.com/docs/PMVfigure1.pdf

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.

Contact Information

  • Investor Relations Canada:
    Rebecca Greco
    Fig House Communications
    +1 (416) 822-6483

    Investor Relations Australia:
    Nicholas Read/Paul Armstrong
    Read Corporate
    +61 8 9388 1474
    M. +61 419 929 046

    PMI Contact Canada:
    Marion McGrath
    Corporate Secretary
    +1 (604) 684-6264
    Toll-Free: 1 (888) 682-8089

    PMI Contact Australia:
    Collin Ellison
    Managing Director & CEO
    +61 8 6188 7900
    www.pmigoldcorp.com