27/09/2012 - 10:32

PMI Gold lines up $US30m in standby finance

27/09/2012 - 10:32

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PMI Gold lines up $US30m in standby finance

PMI Gold Corporation has secured a $US30 million standby finance facility to boost its coffers at it finalises a comprehensive funding package for the development of the Obotan gold project in Ghana.

The facility, with Macquarie Bank, has an interest rate of 6 per cent over LIBOR.

PMI’s board of directors said they viewed the arrangement as a positive endorsement of the company and the Obotan project.

The Minerals Commission of Ghana today recommended government to approve the Obotan project, with environmental approval and a final investment decision the next key milestones for the development.

Managing director Collin Ellison said the approvals were expected to be obtained in the fourth quarter of this year.

Also today, PMI announced it would apply for listing on the Toronto Stock Exchange to raise the profile of the company and expose it to a broader shareholder base.

“With the Obotan Feasibility Study now behind us, we are moving quickly towards the development of a substantial new gold mine in West Africa,” Mr Ellison said.

“As such, it is important that we have maximum financial flexibility to continue our pre-development activities and build on the momentum gained through the feasibility study to progress the Obotan Project rapidly towards a production decision.

“This standby financing facility will give us the capability, if required, to draw down on additional funds over and above our cash reserves, to undertake key pre-development activities in the intervening period while we finalise the main project funding package.”

At 10:30AM, WST, PMI stocks were up 1.1 per cent, trading at 90 cents. 

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