PERTH (miningweekly.com) – ASX-listed Predictive Discovery is hoping to raise A$55-million through a share placement to institutional, sophisticated and professional investors to fund work at its Bankan gold project, in Guinea.

The company on Monday said that it had received firm commitments for the share placement, which will be conducted in two tranches.

The first tranche will consist of more than 206.1-million shares, priced at 18c each, to raise an initial A$37.1-million under the company’s existing placement capacity. The second tranche of 99.3-million shares, raising a further A$17.9-million, will be issued subject to shareholder approval at a meeting scheduled for July.

In addition to the share placement, Predictive will also undertake a share purchase plan (SPP), allowing existing eligible shareholders to subscribe for up to A$30 000 worth of additional shares in the company, also priced at 18c each, to raise up to A$5-million.

The SPP will open on June 7 and will close on June 28.

Funds raised will go towards a 60 000 m diamond drilling and reverse circulation drilling programme which is currently underway at Bankan to increase and upgrade the 3.65-million-ounce referred resource, as well as to fund continued drilling at Bankan’s 35-km-long north-northwest structural corridor.

Funding would also go towards the completion of baseline environmental studies for the project, and to complete a scoping study for the government of Guinea by the end of 2023.

“The significant demand from investors to take part in the placement underpins the quality of the Bankan project. The funds raised will allow Predictive to accelerate its comprehensive drilling programme and build further on the 3.65-million ounces already discovered, as well as deliver a scoping study which will include our baseline and environmental study results in late 2023,” said Predictive MD Andrew Pardey.

“Bankan is potentially one of many significant gold deposits and marks the beginning of our journey in developing Guinea’s Siguiri basin into one of the most exciting new gold addresses in West Africa.”