Link to PMI Ventures web site, www.westafricangold.com
PMI VENTURES LTD. SECURES GHANAIAN PROPERTY ACQUISITION
PMI Ventures Ltd. (the “Company”)[TSX Venture:PMV], as announced on November 25, 2002, has entered into a Letter Agreement with Goknet Mining Company Limited, a privately-held Ghanaian corporation, to acquire up to 85% of Goknets’ interest in exploration concessions/applications covering a length of approximately 50 kilometres and an area of some 486 square kilometres along the axis of the Asankrangwa Gold Belt of South Western Ghana.
The TSX Venture Exchange (the “Exchange”) has accepted this agreement for filing. The Exchange acceptance is to the consideration payable up to the second anniversary of the effective date of the agreement. The share consideration in the third year of the effective date of the agreement will be subject to further Exchange review and acceptance.
In accordance with acceptance of the transaction by the Exchange, the Company completed the initial payment of CAD$90,000 to Goknet on January 17, 2003. The first tranche of shares pursuant to this agreement will be issued shortly.
Consideration for this acquisition will be 3.0 million shares of the Company plus cash payments of approximately US$260,000 over three years as follows:
Upon approval by TSX Venture Exchange & Company shareholders
CAD$90,000 cash payment & 500,000 common shares of PMI
On first anniversary of approval by TSX Venture Exchange
US$100,000 cash payment & 500,000 common shares of PMI
On second anniversary of approval by TSX Venture Exchange
US$100,000 cash payment & 750,000 common shares of PMI
On third anniversary of approval by TSX Venture Exchange
1,250,000 common shares of PMI
The Company will also be required to complete the following expenditures on the properties to fulfill its option:
Year 1 - Expenditure of US$500,000
Year 2 - Expenditure of US$1,000,000
Year 3 - Expenditure of US$1,500,000
The Company is now planning an initial exploration program comprising diamond drilling of the most prospective drill targets identified by earlier exploration programs.
On behalf of the Board,
“Arthur T. Fisher”
Arthur T. Fisher
President
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.
