PMI Gold (TSX:PMV, StockForum), a Vancouver-based firm engaged in the acquisition, exploration, development of mineral properties with operations in Ghana Africa, announced today that company shareholders of both PMI Gold and Asanko Gold (TSX:AKG, StockForum) approved Asanko's proposed acquisition of PMI Gold at their respective shareholder meetings at the end of January.
The acquisition will take effect on or around February 6, 2014 and as a result of the arrangement, Asanko will take possession of all issued and outstanding PMI Gold shares.
According to the news release, the transaction will create an emerging mid-tier gold producer with a clear pathway to 400,000 ounces yearly gold production.
Under terms of the arrangement, each PMI shareholder will receive 0.21 of an Asanko share for every PMI share held.
The transaction is still subject to regulatory approval and PMI is petitioning the Supreme Court of British Columbia for arrangement approval. It is expected that said approval will be given on February 4, facilitating the February 6 arrangement closure.
PMI Gold was in the news recently when the company received recommendations from ISS and Glass Lewis for the proposed business combination with Asanko.
Shares climbed 13.89% on the news to $0.41 per share.
Currently there are 414.0m outstanding shares with a market cap of $169.7 million.