Disco StuPMI and Keegan to Merge as Equals to Form Asanko...

Disco Stu

PMI and Keegan to Merge as Equals to Form Asanko Gold

http://tmx.quotemedia.com/article.php?newsid=56398563&qm_symbol=PMV

The press rumors of several months ago have proven to be correct.

Combined cash is CAD340m so they now have the funding to develop the Obotan mine. They have a heap of gold, but the Keegan portion is much lower grade (similar to PRU).

Second mine to be developed by 2017 from internally generated funds. They would be producing around 400k ounces pa, but that a long time to wait in goldiebugland.

They will not need a hedge, since they will probably not need any more funds (well maybe a small top up like they all do close to mine completion)

The market liked the deal and PMI is up 7 cents to 81 (9.5%). Yeah I know the share price has been a lot higher.

One fine day I will look more closely into what this means in terms of valuing the new Asanka Gold shares.

Good luck all.

loki (being an insomniac I was checking a list of companies listed on ASX/TSX and noticed the price jump so I checked for a reason.)