PMI Gold Acquires Nevsun's Kubi Gold Project, Ghana



    /NOT FOR RELEASE OR DISTRIBUTION IN THE USA./

    TSX Venture Exchange: PMV US PMVGF.PK
    Frankfurt: WKN888063
    Issued & Outstanding: 77,711,311 Fully Diluted: 102,950,999

    VANCOUVER, Oct. 15 /CNW/ - PMI Gold Corporation (TSX/V:PMV) - Douglas
MacQuarrie, President, announces that further to the Company's news release
dated September 17, 2007 the Company has received TSX Venture Exchange
approval and has closed the transaction with Nevsun Africa (Barbados) Ltd.,
("Nevsun"), a wholly owned subsidiary of Nevsun Resources Ltd., of Canada, to
purchase Nevsun's Kubi Gold Project, located 20 kilometres south of the
AngloGold Ashanti Obuasi mine and 46 kilometres southeast of our Obotan
project.
    PMI Gold has issued 9,000,000 common shares to Nevsun at a deemed price
of $0.30 per share. There is a four month hold period expiring February 13,
2008.
    As a result of the above transaction, Nevsun has advised PMI that it will
own 9,000,000 common shares (the "Shares"), representing approximately 11.6%
of the Company's issued and outstanding share capital. Nevsun has further
advised that it has no present intention of acquiring any additional
securities of PMI.
    The balance of the purchase price of US$3 million will be paid within 6
months of closing in cash and or additional shares, at PMI's option, subject
to ensuring that any such additional issuance of shares does not increase
Nevsun's ownership to 20% or more of the outstanding common shares of PMI. The
purchase agreement also provides that for a period of two years Nevsun will
vote the Shares in favour of any proposal made by management of PMI. However,
Nevsun may sell any or all of the Shares at any time subject to PMI having a
right to purchase Shares offered in excess of 500,000 per calendar month. In
addition, the purchase agreement provides that Nevsun may name a nominee as a
director of PMI.

    On behalf of the Board,

    "Douglas R. MacQuarrie"

    Douglas R. MacQuarrie
    President & CEO


    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

    This news release contains forward-looking statements which involve known
and unknown risks, delays and uncertainties not under the Company's control
which may cause actual results, performance or achievements of the Company to
be materially different from the results, performance or expectations implied
by these forward-looking statements. We Seek Safe Harbour.





For further information:

For further information: Douglas R. MacQuarrie, President & CEO,
Telephone: (604) 682-8089, Toll-Free: (888) 682-8089, Facsimile: (604)
682-8094; or for European Investors: Florian Riedl-Riedenstein:, Tel:
43-2774-28814, e-mail: frram@aon.at; or John Mullen:, Tel: 41-522-428795,
e-mail: John Mullen@bluewin.ch Or visit the PMI Gold Corporation website at
www.pmigoldcorp.com (in German: http://pmi.goldseiten.de)

Organization Profile

PMI Gold Corporation

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890