WA explorer seeks $9m

West Perth-based Predictive Discovery has received commitments to raise up to $6.9 million from a share placement and is seeking to raise up to a further $2.1 million to progress its gold discovery in Guinea.

Predictive Discovery said it was the company’s largest capital raising to date, ensuring it was well-funded to carry out exploration activities on the North-East Vankan gold discovery, located within the Kaninko gold project.

The company will issue 138 million shares at 5 cents per share to Australian and overseas investors, with Hartleys acting as lead manager and bookrunner to the placement and Euroz as co-manager.

New York-based Amvest Capital is acting as the North American placement agent.

Predictive Discovery will also issue around 42.1 million new shares under a one-for-15 rights issue, priced at 5 cents each.

The total proceeds raised will also fund metallurgical test work on the Kaninko project and ongoing early stage exploration on the company’s other wholly-owned projects in Guinea, as well as joint venture contributions to its projects in Cote D’Ivoire.

Predictive Discovery also intends to issue unquoted options to directors and employees, including 12.5 million to managing director Paul Roberts and 3 million to chairman Phillip Jackson, exercisable at 9.8 cents and due to expire in May 23.

Company shares were down 12.9 per cent at 1:45pm AEST to trade at 6.1 cents.