West Perth-based Predictive Discovery has raised funds to progress its largest drilling program to date for the company's Bankan gold project in Guinea.
West Perth-based Predictive Discovery has raised funds to progress its largest drilling program to date for the company's wholly owned Bankan gold project in Guinea.
Predictive said it would use $26.5 million raised under an institutional placement to fund a 110,000-metre drilling program at Bankan, a greenfields discovery in the Siguiri Basin, where the company has completed extensive drilling programs since discovering the project in April last year.
The latest program comprises infill, extensional, and exploration drilling targeting multi-million-ounce deposits across Predictive's entire Guinea landholding, which also includes the Kankan, Nonta, and Koundian projects.
The company plans to deliver a maiden resource for the Bankan project by mid-year.
Managing director Paul Roberts said Predictive had received overwhelming support for the placement.
“The strong participation by tier-one 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,” Mr Roberts said.
He noted the placement would allow the company to embark on its largest drilling program to date.
Mr Roberts said Predictive was also progressing a divestment strategy for its non-core assets, including in Burkina Faso and Cote d’Ivoire, while maintain some exposure for shareholders.
About 331 million shares will be issued in two tranches under the placement, priced at 8 cents each. It represents about a 7 per cent discount to Predictive’s last closing price on May 12.
The first tranche will raise about $20 million and is expected to complete on May 25.
The second tranche (about $6.5 million) is subject to shareholder approval, to be sought at a meeting that will take place late next month. Predictive directors each intend to subscribe for $45,000 worth of shares in tranche two.
Euroz Hartleys and Sprott Capital Partners are acting as joint lead managers and bookrunners to the raise.
Predictive emerged from a two-day trading halt on Monday, with its shares closing up 2.3 per cent to trade at 9 cents each.