PMI, which is listed on both the Toronto Stock Exchange and the Australian Securities Exchange, obtained the standby funding facility from its largest shareholder, Macquarie Bank.

The company said while it remained in a strong cash position – with $30 million cash on hand at the end of August – the additional $30 million provided flexibility for pre-development activities such as engineering, design, environmental studies and other statutory approvals.

The funding will prop up the interim activities while PMI completes a full funding package for the development of its $296 million flagship Obotan project.

The maturity date of the Macquarie facility is June 30, 2014, or upon the first draw-down under a project financing/equity funding of the Obotan. The interest rate is 6% over LIBOR.

PMI Gold managing director and CEO Collin Ellison said the standby financing facility enabled the company to draw down additional funds over and above its cash reserves to maintain momentum as it moved toward production.

“With the Obotan feasibility study now behind us, we are moving quickly towards the development of a substantial new gold mine in west Africa,” Ellison said.

“As such, it is important that we have maximum financial flexibility to continue our pre-development activities and build on the momentum gained through the feasibility study to progress the Obotan project rapidly towards a production decision.”

Additionally, PMI will apply for quotation of its securities on the main board of the TSX, in an effort to raise the profile of the company and make investment in PMI available to a broader shareholder base.

Meanwhile, in a further vote of confidence for the project, PMI was granted mining leases for Obotan by the Minerals Commission of Ghana and Minister of Lands and Natural Resources.

Once formally issued, the three 15-year leases will cover 93.24sq.km and incorporate the four deposits at Obotan.

Based on the FS completed last month, forecast production for the mining operation is 221,500 ounces per annum over the first five years with a total of 2.3 million ounces recovered over the 11.5-year mine life.

PMI is expected to make a final investment decision on the Obotan project later this year, with construction anticipated to start in the first quarter of 2013.

First gold production is then scheduled for early 2014.

Shares in PMI were up 1% to A89c.