PMI Gold Corp. (Stock Profile – TSXV:PMV) announced that the Minerals Commission of Ghana has recommended that the Minister of Lands and Natural Resources grant the required Mining Leases to the company covering the Obotan project.
Concurrent with today’s announcement, PMI Gold also announced it has entered into a committed letter offer for a $30-million (U.S.) standby financing facility from Macquarie Bank while it completes the full financing package for development of the Obotan gold project.
According to Raymond James analyst Brad Humphrey, “Receipt of the Mining Leases for the Obotan project is a key milestone along the de-risking path towards first gold production. The next critical steps along the path include Environmental permits, a construction decision and project financing, all of which are expected later in the fourth quarter or early in the first quarter of next year.”
Humphrey also notes, “With its recently released feasibility study now complete and final permitting, financing and a construction decision all just on the horizon. We consider PMI’s Obotan project to be one of the better development projects currently moving forward within the developer group. We see an opportunity for investors to add PMI to portfolios at depressed levels as Obotan advances towards production and the company garners greater investor profile.”
The Raymond James analyst rates the company as Outperform with a target price of $1.40 per share. PMI Gold is moving toward its first gold pour in 2014 at its Obotan project in Ghana. Permitting, financing and a construction decision are anticipated in the near term now that a feasibility study is complete. Shares of PMI Gold are currently trading at $0.91.