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| | Wednesday, March 12, 2008
Non-Brokered Private Placement Closed Fiscal Advisory Agreement Announced
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THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES
News Release # 08-03
March 12, 2008, Vancouver BC - PMI Gold Corporation (TSX.V:PMV) - Douglas MacQuarrie, President, announces that the non-brokered private placement announced on January 14, 2008 has been closed. A total of 1,038,425 shares have been issued at a purchase price of $0.28 per share. In addition a total of 519,213 share purchase warrants to purchase an additional 519,213 shares at $0.375 in the first year and $0.45 in the second year have also been issued. These shares are subject to a four month hold period expiring on July 11, 2008. Insiders subscribed for 622,000 shares representing 60% of the shares issued.
The Company has also entered into a fiscal advisory agreement with D&D Securities Company of Toronto (the "Agent") to assist on a best efforts basis in the sourcing and closing of a private placement equity financing of up to 14,285,715 Units (the "Units") at $0.28 per Unit, to raise up to $4 million (the "Offering"). Each Unit will consist of one common share in the capital of the Company and one-half of one common share purchase warrant. A full warrant would be exercisable at $0.375 for 12 months and at a price of $0.45 if exercised in the following 12 months to purchase an additional Common Share of the Company.
The Company will pay the Agent a fee equal to 7% of the gross aggregate proceeds of the Offering, payable on the Closing Date. In addition, the Company will issue to the Agent on the Closing Date, subject to regulatory approval, Agent's Warrants entitling the Agent to purchase up to that number of Units (the "Agent's Units") that is equal to 3% of the number of Units sold pursuant to the Offering for a period of eighteen months from the Closing Date at a price of $0.28. Closing is expected on or before April 15, 2008.
Proceeds of the financing are to be utilized to develop the Company's gold properties in Ghana and for general working capital purposes.
On behalf of the Board,
"Douglas R. MacQuarrie"
Douglas R. MacQuarrie
President & CEO
For further information please contact:
Douglas R. MacQuarrie, President & CEO
Telephone: 1 (604) 682-8089 Toll-Free: 1 (888) 682-8089 Facsimile: 1 (604) 682-8094
or for European Investors: Florian Riedl-Riedenstein: Tel: 43-2774-28814, e-mail: frram@aon.at
or John Mullen: Tel: 41-522-428795, e-mail: JohnMullen@bluewin.ch
Or visit the PMI Gold Corporation website at www.pmigoldcorp.com (in German: http://pmi.goldseiten.de)
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release contains forward-looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectations implied by these forward-looking statements. We Seek Safe Harbour.
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