News

February 10, 2009

We Are Now Heading To Production: PMI Gold May Come Up With An Unexpected Way Of Funding The Kubi Gold Project

By Charles Wyatt

Over the past four months a change in sentiment has become discernible at Canadian-listed PMI Gold. In November the company’s chairman, Peter Buckle, resigned after less than a year in the position. But Doug MacQuarrie stayed in charge as president and chief executive. At that stage, however, even he was getting depressed as share prices hit rock bottom, as the kicker at the end of the following statement makes clear: “considering the depressed state of the equity markets and our negative working capital position, the company has resolved to lower the price of all the outstanding share purchase options and warrants to C$0.10, or such other price acceptable to the TSX Venture Exchange.” At the same time PMI tried to settle as many of its current accounts payable by issuing shares for debt at a deemed price of C$0.12 per share to those creditors who would accept the offer.

It was a time when the end of the world seemed to have come, no matter what the business. The only bit of good news at the time for PMI Gold was that Trafalgar Specialized Investment Fund, which had advanced C$3.5 million to the company in July 2008, still seemed supportive. The fund had put up half that money as a bridging loan and half as a convertible debenture to allow PMI Gold to finance the acquisition of the Kubi gold project in Ghana. Now, helpfully, Trafalgar had granted an extension...