PMI, Keegan Shelve Plans To Merge Into $695M African Miner

Law360, New York (February 19, 2013, 3:58 PM EST) -- A proposed combination between Australian miner PMI Gold Corp. and Canada’s Keegan Resources Inc. that would have spawned a CA$700 million ($695 million) West Africa-focused powerhouse is off the table after major PMI shareholders balked at the terms, the companies said Monday.

Several substantial investors had spoken out against the proposed terms, saying they valued Keegan too highly and invited questions from Australian regulators about the merged miner’s deal structure and combined board. Shareholders also questioned whether Keegan should be involved in an expansive PMI gold...
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