Emerging gold miner PMI Gold and Canada-based exploration and development company Keegan Resources have jointly announced that the companies have agreed to terminate an agreement they entered into in December last year.

The companies said that following mutual determination of PMI and Keegan it would be unlikely PMI‘s shareholders would approve the transaction, pointing out that the termination was not a result of any disagreement or differences arising between the respective boards.

The merger between PMI Gold and Keegan would have combined the two companies, which would have been named Asanko Gold to reflect the West Ghana region in which the two companies hold their principal gold projects.

As a result of the mutual decision to terminate the agreement, the special meeting of shareholders of PMI, which was scheduled for 20 February 2013, has been cancelled. However, the special meeting of Keegan Resources shareholders scheduled for 19 February 2013 will proceed, only to consider the approval of a name change of Keegan to Asanko Gold Corp.

PMI and Keegan have agreed that no termination fee will be payable as a result of the mutual termination of the agreement and the parties have released each other from all obligations in respect of the agreement.

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