In a significant financial boost and strong show of confidence, Predictive Discovery Ltd has secured binding commitments from the Lundin Family and Zijin Mining Group Co. Ltd to raise about A$69.2 million in a strategic private placement at an issue price of A$0.265 per share.
The Lundin Family will invest about A$45.1 million to acquire a 6.5% shareholding in Predictive and Zijin Mining Group Co., Ltd. will invest A$24.1 million for a 3.5% holding.
This strategic investment will give PDI a healthy pro-forma cash balance of $98 million before costs once the placement is complete.
Proceeds will be used to advance a definitive feasibility study for the flagship Bankan Gold Project in Guinea, progress environmental and social programs, continue regional exploration programs and early development activities.
Investment speaks to project quality
“We are delighted to welcome the Lundin family and Zijin as strategic shareholders in Predictive Discovery,” Predictive managing director Andrew Pardey said.
“Their investment is testament to the quality of the Bankan Gold Project and the progress PDI is making towards developing it into a tier-1 gold mine.
“We look forward to working collaboratively with the Lundin Family and Zijin together with our other shareholders and stakeholders.
“This capital raise provides a strong financial platform for PDI to accelerate the Bankan Gold Project.
“PDI will be fully funded through to a development decision and will also be able to conduct selected early works and continue our regional exploration programs.”
The money will be used to:
- Complete definitive feasibility studies for Bankan;
- Progress biodiversity and social programs;
- Continue regional exploration programs to expand the 5.38-million-ounce resource estimate;
- Begin early development activities as front-end engineering and design, ordering of long lead items and initial earthworks; and
- Support general working capital.
Predictive completed a pre-feasibility study for Bankan in April 2024 that outlines a 269,000-ounce per year operation over 12 years and has now progressed to the definitive feasibility study.
PDI considers Bankan to be highly prospective for additional discoveries and is currently exploring targets near the NEB and BC deposits as well as to the north along a 35-kilometre-long gold superstructure.