PMI Gold and Keegan Resources Merge to Form Asanko Gold Inc

PMI Gold Corporation (TSX:PMV, ASX:PVM) and Keegan Resources Inc. (TSX:KGN, NYSE:KGN) have merged to form Asanko Gold Inc.

As quoted in the press release:

Asanko is set to become the leading gold development company in West Africa with near term production expected from a unitized project comprised of two nearby gold deposits – Obotan and Esaase. Other merger highlights include:

• Measured and Indicated Resources of combined projects = 6.94 million ounces at an average grade of 1.90 grams per tonne^1,2,3;
• Additional Inferred Resources of combined projects = 2.65 million ounces at an average grade of 1.87 grams per tonne^1,2,3;
• Strongly capitalized with over $340 million in cash on hand and no debt outstanding;
• Obotan can proceed to construction quickly – approximately 200,000 ounces per year with first gold pour expected in 2014

Keegan’s  President and CEO, Peter Breese, said:

This is truly a unique and exciting opportunity to combine these two adjacent and near-term development projects and to have available some $340 million in combined cash to fund a Mid-Tier scale production growth profile starting in about two years. We expect significant synergies through the joint development of Obotan and Esaase which we expect will ultimately create one of the largest gold mining and exploration districts in Africa.

To view the whole press release, click here.