Predictive Discovery Ltd (ASX:PDI) last week closed its $2.6 million renounceable rights issue heavily oversubscribed.
Subscriptions were received under the rights issue for a total of 17.3 million new shares, resulting in a shortfall of 44.8 million shares.
The demand for shortfall from both new and existing shareholders has greatly exceeded the number of available new shares.
High demand means a placement will follow the rights issue
As part of the rights issue, Predictive had previously committed to allocate at least $850,000 of shares to clients and affiliates of the Sprott Group of Companies.
Sprott is a large and well known North-American based asset management firm with a strong record in identifying and funding successful early stage resource companies.
Given the large demand for new shares under the rights issue, Predictive expects that it will be required to issue additional new shares and options via a separate placement.
Details of the placement will be outlined once the rights issue’s shortfall allocation process is complete.
Funds to advance exploration in West Africa
The net proceeds from the rights issue and placement will be used to advance the company’s exploration strategy in West Africa.
Recently, a 5,000-metre reverse circulation drilling program commenced on the Bobosso Project, Cote D’Ivoire.
Drilling will test up to nine target areas, including following up two areas where the April-May diamond drilling program obtained results including 8.7 metres grading 3.3 g/t gold.
The program is being funded by Progress Minerals Inc as part of the three-way joint venture between Predictive, Progress and West African Ventures Investment SARL.