Wednesday, 26th September 2007 (1717 views)

PMI Gold has announced that it will purchase the Ghana-based Kubi gold project from Nevsun Resources.

The terms of the purchase indicate that PMI will purchase all the shares of the Kubi project for $3 million (£1.48 million) in cash or PMI shares, plus nine million additional shares in PMI's capital stock – although the exact combination of cash and shares can be negotiated up to six months after the purchase is closed.

According to Resourcex Investor, 58,696 ounces of gold were mined from open pits on the Kubi project property between 1996 and 2006.

The Kubi project, which covers an area of 19.2 square kilometres, is partially located on forest reserve property – an issue which PMI intends to address by developing an underground operation in the non-forest reserve region of the property and transporting materials offsite for further processing.

It has a main mining lease with a renewable ten-year term that is valid until April 2009.

 

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