Combined company will have a total gold resource of nearly 10 million ounces
Keegan Resources (TSX: T.KGN, Stock Forum) Wednesday said it will merge with PMI Gold (TSX: T.PMV, Stock Forum), this according to a company news release.
The merged company will be named Asanko Gold and have a combined Measured and Indicated resource of 6.94 million gold ounces at an average grade of 1.90 grams per tonne (g/t), along with an Inferred resource of 2.65 million gold ounces at an average grade of 1.87 g/t.
PMI shareholders will receive 0.21 Asanko shares for each PMI share held, while existing Keegan security holders will not need to exchange their securities in the merger. Existing Keegan and PMI shareholders will each own approximately 50% of the combined company.
"This is truly a unique and exciting opportunity to combine these two adjacent and near-term development projects and to have available some $340 million in combined cash to fund a Mid-Tier scale production growth profile starting in about two years. We expect significant synergies through the joint development of Obotan and Esaase, which we expect will ultimately create one of the largest gold mining and exploration districts in Africa," said Keegan President and CEO Peter Breese.
Stockhouse Conflict and Disclosure Policy:
Stockhouse publishing Ltd., owners and operators of Stockhouse.com, has established
the following rules to ensure that there is no appearance of impropriety on the
part of any Stockhouse Editorial writers ("Writers"). The content of Stockhouse
Editorial articles (the "Articles") are the opinion of the Writer and any reliance
on the content of these articles is at your sole risk. Our Writers are not registered
investment advisors. You should not make any kind of investment decision in relation
to Articles or stocks discussed in them without obtaining advice from a registered
Facts relied upon by our Writers are generally provided by the subject companies
or gathered by our Writers from other public and/or private sources. These facts
may be in error and if so, the opinions of our Writers may be materially different.
Writers may own, buy, or sell shares in public companies mentioned in their Articles,
but in the Article they must prominently state their ownership position. Thus, a
conflict may exist. Writers are not permitted to write Articles that attempt to
benefit persons connected to the Writer, such as family or friends, except where
disclosure is made in the same way as if the Writer him/herself owns stock.
Writers cannot solicit, accept, or agree to receive anything of value given or paid
with the intent of influencing their Articles.
Stockhouse notifies each Writer about these rules, and we rely on the integrity
of our Writers to ensure that our rules are followed.