Keegan Resources Inc.: PMI and Keegan Agree to Terminate Merger Plans
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 18, 2013) - PMI Gold Corporation ("PMI") (TSX:PMV)(FRANKFURT:PN3N)(ASX:PVM) and Keegan Resources Inc. ("Keegan") (TSX:KGN)(NYSE MKT:KGN) jointly announced today that they have terminated the arrangement agreement (the "Arrangement Agreement") they entered into on December 5, 2012 in accordance with its terms. This decision comes as a result of the mutual determination of PMI and Keegan that it is unlikely that PMI's shareholders will approve the transactions contemplated by the Arrangement Agreement. The termination of the Arrangement Agreement is not on account of any differences arising between the respective boards about valuation issues or on account of any new facts having come to their attention.
As a result of the mutual decision to terminate the Arrangement Agreement, the special meeting of shareholders of PMI which was scheduled for February 20, 2013, has been cancelled. The special meeting of Keegan shareholders scheduled for February 19, 2013 will proceed but only to consider the approval of a name change of Keegan to "Asanko Gold Corp.", reflective of the region in Ghana where it operates. PMI and Keegan have agreed that no termination fee will be payable as a result of the mutual termination of the Arrangement Agreement and the parties have released each other from all obligations in respect of the Arrangement Agreement.
PVM Price at posting:
64.5¢ Sentiment: None Disclosure: Not Held
