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

PMI Gold Corporation

February 22, 2012 15:31 ET

PMI Gold Corporation Enters Into A Bought Deal Agreement to Raise Gross Proceeds of C$35 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 22, 2012) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

PMI Gold Corporation (TSX VENTURE:PMV)(ASX:PVM)(FRANKFURT:PN3N.F) ("PMI" or the "Company") has today entered into an agreement with a syndicate of underwriters co-led by Clarus Securities Inc. and RBC Capital Markets and including GMP Securities L.P. and Raymond James Ltd. (the "Underwriters") under which the Underwriters have agreed to buy 28,000,000 Common Shares (the "Common Shares") from the Company on a bought-deal underwritten basis and sell them to the public at a price of C$1.25 per Common Share.

The gross proceeds raised from the offering will be C$35,000,000. The offering is subject to customary conditions and receipt of required regulatory approvals, including the approval of the TSX Venture Exchange. The Common Shares will be offered by way of a short form prospectus in each of the provinces of Canada (other than Quebec), and in such other jurisdictions, including the United States and Australia, 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 March 16, 2012.

PMI intends to use the net proceeds of the offering to fund its definitive feasibility study on, and development of, the Company's Obotan Gold Project and for general corporate purposes.

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. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.

On behalf of the Board,

"Collin Ellison"

Managing Director & CEO

Visit the PMI Gold Corporation website at www.pmigoldcorp.com.

Cautionary Note Regarding Forward-looking Statements

This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements about the closing of the Offering and the use of proceeds of the Offering are forward-looking statements that involve various risks and uncertainties. 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. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of current exploration activities; fluctuating gold prices; possibility of equipment breakdowns, delays and availability; exploration cost overruns; availability of capital and financing; general economic, market or business conditions; regulatory changes; timeliness of government or regulatory approvals; and other risks detailed herein and from time to time in the filings made by the Company with securities regulators, including in the section entitled "Risk Factors" in the Company's Annual Information Form dated September 20, 2011. In particular, statements relating to the Company's plans to complete a definitive feasibility study on the Obotan Gold Project in 2012 are subject to various factors, including positive results from ongoing exploration; expansion and upgrading of existing mineral resources (which are currently primarily in the inferred resource category); and completion of favourable geotechnical drilling programs, metallurgical test work, mine plan engineering, environmental and community relations assessments, and preliminary economic assessments. Due to the uncertainty which may attach to inferred mineral resources, it cannot be assumed that all or any part of the inferred mineral resources at the Obotan Gold Project will be upgraded to indicated or measured mineral resources as a result of continued exploration. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.

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:
    Fig House Communications
    Rebecca Greco
    +1 (416) 822-6483
    fighouse@yahoo.com

    Investor Relations Australia:
    Read Corporate
    Nicholas Read/Paul Armstrong
    +61 8 9388 1471
    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