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TSX Venture Exchange: PMV
Australian Securities Exchange: PVM
Frankfurt: PN3N.F
VANCOUVER, June 1, 2011 /CNW/ - PMI Gold Corporation (TSX.V: PMV) (ASX: PVM) is pleased to advise that it has taken another key step in its strategy to prepare the Company for becoming a gold producer with the appointment of highly experienced mining executive, Mr. Michael Allen as Chief Financial Officer. Mr. Allen will replace Mr. Philip Gibbs who was employed in this role on a contract basis in Canada.
Mr. Allen is a Chartered Accountant with some 30 years' experience, which includes senior financial executive appointments in the mining, advisory and investment industries.
Mr. Allen was the Chief Financial Officer and Company Secretary for ASX listed Dragon Mining NL. He was involved in the acquisition of mining assets in Finland and Sweden and managing the associated ongoing financial responsibilities, including those associated with the development of a gold mine in Sweden.
He worked with Resolute Resources, the original owners of PMI's Obotan Gold Project in Ghana, in the 1990s, as a senior manager responsible for improving the Company's financial management procedures and project modeling. At the same time, he was the Finance Manager and Company Secretary of the Golden Pride gold operation in Tanzania. In that role, he helped negotiate the fiscal terms and other arrangements for mining in Tanzania.
Mr. Allen was also employed by mining giant AngloGold in Tanzania as Commercial and Financial Manager for the East Africa region. During his time with AngloGold, he was involved in managing the split of the AngloGold and Anglo American operations, managed finance and legal issues and the extensive licence portfolio.
Most recently, Mr. Allen has been a Principal in the Corporate Finance division of RSM Bird Cameron in Perth, where he provided advice to a range of clients. He is a member of the Australian Institute of Company Directors and the Australian Shareholders' Association.
The Company has granted 2,000,000 incentive stock options to Mr. Allen to purchase common shares of the Company under its Stock Option Plan. The options are exercisable for a four-year period at a price based on a 50% premium to the combined 30-day volume weighted average price of the Company's shares of the TSX Venture Exchange and the Australian Securities Exchange and are subject to the following vesting provisions:
- 200,000 options to vest immediately and an additional 200,000 options to vest upon the conclusion of 6 months of Employment by Mr. Allen;
- 400,000 options subject and conditional upon the Obotan Pre-Feasibility Study being completed by 31 December 2011;
- 400,000 options subject and conditional upon a decision being made by the Company to proceed to production before December 31, 2012;
- 400,000 options subject and conditional upon the discovery or acquisition by the Company of at least 1 million ounces of gold resources in measured and indicated categories (reported in accordance with the JORC Code), excluding any resources in measured and indicated categories (as defined in accordance with the JORC Code) in existence at the date of this Agreement (as defined in accordance with JORC Code) at Obotan and Kubi;
- 400,000 options subject and conditional upon the discovery or acquisition by the Company of at least 1 million ounces of gold resources (reported in accordance with the JORC Code) in the area beyond a 20 kilometre radius of the resources (as defined in accordance with JORC Code) in existence at the date of this Agreement at Obotan and Kubi.
Upon a Material Change occurring in the period commencing six months and one day from Mr. Allen's employment, 1,200,000 options will vest (or such lesser number if less than 1,200,000 options are unvested).
The above provisions also provide that Mr. Allen must continue in his role as Chief Financial Officer of the Company during the vesting periods.
Mr. Allen's appointment follows PMI's recent recruitment of another experienced resources executive, Thomas Amoah, as Exploration Manager.
The appointments of Mr. Allen and Mr. Amoah are significant steps in PMI's planned transition from a successful explorer to a substantial West African gold producer.
PMI Managing Director Collin Ellison said "Mr. Allen and Mr. Amoah's experience in project development will prove invaluable as the Company advances the Pre-Feasibility Study at Obotan. PMI expects to continue building its team to ensure the Company can take full advantage of its growth prospects and can manage the Company's expanding exploration and development activities in Ghana."
The PMI Board would like to thank Mr. Gibbs for his substantial contribution to the Company and wish him well for the future.
On behalf of the Board,
"Collin Ellison"
Managing Director & CEO