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Tuesday, 16th October 2007 (2952 views)

PMI Gold has closed a transaction with Nevsun Africa to purchase Nevsun's Kubi gold project, it has been announced.

The president of PMI Gold, Douglas MacQuarrie, said Nevsun has been issued nine million common shares from the company - which represent around 11.6 per cent of PMI's outstanding share capital - for a four-month holding period.

Some $3 million (£1.47 million) will also be paid to Nevsun in the form of additional shares or cash within six months of closing the deal.

Located in Ghana, the Kubi gold project is 20 kilometres to the south of AngloGold's Ashanti Obuasi mine and 46 kilometres away from PMI gold's Obotan project.

A gold resource estimate carried out on the property by Golder Associates has determined that the Kubi gold project is home to 604,085 ounces of indicated gold resources and a further 315,079 ounces of inferred gold resources.

According to PMI, a pre-feasibility study will be carried out on the project in the coming months.

 

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