Predictive Discovery has secured commitments to raise A$50 million ($32.6 million) from a strategic placement involving institutional and sophisticated investors. The funds are targeted at advancing the Bankan Gold Project in Guinea, with a focus on exploration and resource definition drilling.
New Shares Issuance
The placement will involve issuing around 263.2 million new shares priced at A$0.19 each. This price represents a 9.5% discount to the last traded price of A$0.210 on April 29, 2024, and a 12.9% discount to the five-day volume-weighted average price of A$0.218.
Expanding Resource Potential
Predictive will use the proceeds to grow the Bankan Gold Project, aiming to expand and upgrade its current mineral resource of 5.38 million ounces (moz). This includes aggressive exploration drilling to identify highly prospective targets and secure an exploitation permit.
Project Development and Environmental Focus
The funds will also be allocated towards finalizing the definitive feasibility study (DFS) to refine opportunities identified in the preliminary feasibility study (PFS). The PFS has projected a 269,000oz annual operation over a 12-year lifespan, with a maiden ore reserve of 3.05 moz. The capital will also support environmental and social initiatives as the project progresses.
Management Optimism
Predictive's managing director Andrew Pardey is optimistic about the strategic impact of the placement: "The equity raise is an outstanding outcome for PDI and places the company in a very strong position to continue enhancing and de-risking our Tier-1 Bankan Gold Project. The recent completion of the PFS was a key milestone and confirmed that Bankan can become a large-scale, long-life, and low-cost gold mine."
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