Galiano Gold Inc (GAU)

[Talldude]

PMI and Keegan Agree to Terminate Merger Plans

Monday, February 18, 2013

Globe & Mail news coverage

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.


About Keegan Resources Inc
Keegan is a gold development company which has been focussing on near term gold production at its high grade multi-million ounce Esaase gold project in Ghana. Keegan offers investors the opportunity to share ownership in the rapid exploration and development of high quality pure gold assets. Keegan is focused on its wholly owned flagship Esaase gold project (3.83 million ounces of gold in the Measured and Indicated category with an average grade of 1.73 g/t Au and 1.25 million ounces of gold in the Inferred category with an average grade of 1.75 g/t Au, based on a 0.8 g/t Au cut-off) located in Ghana, West Africa; a highly favourable and prospective jurisdiction. Managed by highly skilled and successful technical and financial professionals, Keegan is well financed with no debt. Keegan is also strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighbouring communities.

Keegan trades on the TSX and the NYSE MKT under the symbol KGN.

Greg McCunn, P.Eng. of Keegan Resources is the Qualified Person under NI 43-101 who has assumed responsibility for the technical disclosure relating to Keegan in this release.

Charles J. Muller, B.Sc. Geology (Hons), Pr.Sci.Nat., MGSSA, a Director of Minxcon Pty Ltd. of Johannesburg, South Africa and an independent Qualified Person under NI 43-101 is responsible for any disclosure related to Keegan's Mineral Resources in this release.

(wry observation) So much for "merger of equals, eh?"