PMI Gold Corp closes $35 mln bought deal public financing

PMI Gold Corp (CVE:PMV) (ASX:PVM) said Friday it has completed its C$35.0 million bought deal public offering.
The offering, completed through a syndicate of underwriters co-led by Clarus Securities and RBC Capital Markets, consisted of 28.0 million common shares at a price of C$1.25 each.
PMI said it plans to use the net proceeds of the offering to fund its definitive feasibility study on its Obotan Gold project and for general corporate purposes.
In January, PMI Gold unveiled what it called "outstanding" results from its NI 43-101 compliant pre-feasibility study for its flagship Obotan gold project in Ghana, West Africa.
The study, which was done by GR Engineering Services Limited, outlined a post-tax net present value (NPV) of US$416.4 million, assuming a gold price of US$1,300 per ounce, a five percent discount rate and a contract mining scenario, the company said.
The internal rate of return (IRR) for the open pit design project was calculated at 31 percent after tax, with a 2.9 year payback period from the start of gold production.
Initial capital costs were estimated at US$183.5 million, excluding pre-strip mining costs of just over $68 million, for a project with an average annual gold production forecast of 205,600 ounces per year over an initial 11.2 year mine life.
Life-of-mine production was projected at 2.1 million recovered ounces of gold, at a cash cost of US$690.2 per ounce, including royalties of seven percent, refining costs and pre-strip mining.
The production scenario assumes a hard rock carbon-in-leach (CIL) plant capacity of 3.0 million tonnes of ore per year for 10 years, with capacity of up to 3.84 million tonnes per year for soft oxides.
PMI Gold said the strong economics of the project provide a solid base for the feasibility study that is already underway, and is targeted for completion by the end of June this year, paving the way for a development decision in the third quarter.