Dec 5 PMI Gold Corporation
will merge with Keegan Resources Inc to form a
new company focused on west Ghana, Africa's second largest
producer of gold.
PMI Gold and Keegan have adjacent gold projects in Ghana,
where major mining firms such as Newmont Mining Corporation
and Anglogold Ashanti also operate.
Existing shareholders of Keegan will not need to exchange
their shares. PMI shareholder will receive 0.21 shares in the
new company, Asanko Gold Inc, for each PMI share held.
Asanko Gold will have a market capitalization of about C$700
million, the companies said in a statement.
Keegan Chief Executive Peter Breese will be Asanko's CEO,
while PMI Gold CEO Collin Ellison will be the President of the
Existing Keegan and PMI shareholders will each own about 50
percent of Asanko Gold.
Keegan appointed Canaccord Genuity as financial adviser,
while Macquarie Capital Markets Canada will advise PMI Gold on
Keegan shares closed at C$3.91 on Tuesday on the Toronto
Stock Exchange. PMI's shares closed at 74 Canadian cents.