PERTH (miningweekly.com) – ASX-listed Predictive Discovery will raise A$26.5-million in a share placement to institutional, sophisticated and professional investors to fund exploration work at its Bankan gold project, in Guinea.
The share placement will be priced at 8c a share, representing an 8.38% discount to Predictive’s five-day volume weighted average share price, and will be conducted in two tranches.
The first tranche will consist of more than 249.6-million shares, to raise an initial A$19.97-million under the company’s existing placement capacity, while the second tranche of more than 81.5-million shares would be issued subject to shareholder approval.
A shareholder meeting is scheduled for late June.
“We have received overwhelming support for this placement. The strong participation by tier-1 international and domestic institutional investors, many of which have a strong track record of investing in the West African sector, reinforces our conviction that we have found a truly remarkable project at Bankan – one with a very long runway of growth ahead of it,” said Predictive MD Paul Roberts.
“The placement will enable us to commence by far the largest programme that we have undertaken to date to deliver key project milestones at NE Bankan and Bankan Creek as well as test the numerous potentially high-impact exploration targets in the broader Bankan project, beginning with Argo where we already have high-grade in the auger over good intercepts.
“Consistent with our focus on advancing Bankan and commitment to our 100%-owned portfolio in Guinea, the company is also progressing its divestment strategy for noncore assets, with opportunities for its Burkina Faso and Cote d’Ivoire licences being progressed to minimise ongoing costs on those projects, whilst maintaining some exposure for shareholders,” said Roberts.