PMI Gold Corporation - $2.75 million private placement, drilling program expanded



    
    /THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO
    U.S. NEWS AGENCIES/

    TSX Venture Exchange: PMV
    US PMVGF.PK
    Frankfurt/Berlin: AOJMW7
    Issued & Outstanding: 148,989,570
    Fully Diluted: 223,756,033
    

    VANCOUVER, Aug. 25 /CNW/ - PMI Gold Corporation (TSX.V:PMV), the Company
is pleased to announce it will use its best efforts to raise up to $2.75
million by the private placement of up to 27.5 million units of the Company to
accredited investors at the price of $0.10 per unit. Each unit will be
comprised of one common share and one share purchase warrant exercisable at a
price of $0.15 per share for two years.
    Proceeds from the private placement will be used to retire our
outstanding secured debt, to pay down accounts payable and to expand the
drilling program currently underway on our Kubi Gold project in Ghana. A
finders fee may be payable on a portion of the offering.
    The private placement is subject to receipt of necessary stock exchange
approvals.

    
    On behalf of the Board,
    "Douglas R. MacQuarrie"
    President & CEO

    Neither the TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    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.

    %SEDAR: 00005434E




For further information:

For further information: Douglas 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 visit the PMI Gold Corporation website at
www.pmigoldcorp.com

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PMI Gold Corporation

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