Predictive taps investors for $50m

Gold exploration company Predictive Discovery has announced it will raise $50 million in a bid to enhance further growth and development at its flagship Bankan gold project in Guinea.

The junior has been quite active in the capital raising space over the past few years – rattling the tin for up to $60 million in 2022, along with $27 million a year earlier.

Within a single tranche placement, Predictive said it would issue around 263.2 million new fully paid ordinary shares at an issue price of 19 cents per share.

The issue price represents a 9.5 per cent discount of Predictive's last traded price of 21 cents per share on April 29 and a 12.9 per cent discount to the five-day volume weighted average price of 21.8 cents per share, as of the same date.

Canaccord Genuity and SCP Resource Finance both acted as joint lead managers and bookrunners to the placement, while BMO Capital Markets also acted as joint lead manager to the placement.

Predictive managing director Andrew Pardey told the market that the raise would continue to further de-risk its project.

“The recent completion of the pre-feasibility study was a key milestone and confirmed that Bankan can become a large-scale, long-life and low-cost gold mine," he said.

"These additional funds will allow Predictive to undertake the definitive feasibility study and accelerate the multiple drilling programs which are aiming to add gold ounces, enhance the pre-feasibility study production profile and define new regional deposits in the Argo area.

"Overall, more than half of the proceeds will be allocated to drilling programs.”

During its recently completed pre-feasibility study, the project was expected to become a 269,000 ounces per year operation, over a 12-year period, with a maiden ore reserve of 3.05m oz. 

Predictive closed trade at 20 cents per share, down 7 per cent.