News

February 20, 2008

PMI Gold Envisages Bright Future In Ghana

By Charles Wyatt

Time to take another look at Canadian listed PMI Gold Corporation, as it is clearly making good progress with its projects in Ghana. This is - and has been for a long time - one of the few sensible countries in which to operate in Africa. As our Man in Oz pointed out in his review of the Australian mining juniors last week, Gambia has now joined the ranks of the crackpots in DRC, Zambia, Zimbabwe, South Africa and who knows where next in Africa, following news that it had repudiated titanium mining licenses for Carnegie Minerals. All these countries have been blessed with wonderful geology and cursed by lousy government. At one time the baddies were Angola, Sierra Leone, and Liberia, but these countries are now relatively stable. Ghana, however, has motored serenely on, providing a model for political reform to Africa. The fair and orderly presidential election of 2004 returned President John Kufuor for a second term and the economic reforms he has undertaken are bearing fruit.

Ghana is the second biggest producer of gold in Africa. That fact is signified by the old name by which it was known until independence in 1957: Gold Coast. The importance that investors attach to this stability is reflected in the enthusiasm for PMI’s placement last month, which had to be increased from 10 to 14.3 million units and ended up raising up to C$4 million. The money will be used to fund engineering studies to advance the company's two most advanced projects. Kubi, acquired last...