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Predictive Discovery receives cash injection, news flow expected

Published: 00:29 15 Nov 2018 GMT

one hand giving money to another hand
Progress has also agreed to pay conditional future bonus payments

Predictive Discovery Ltd (ASX:PDI) has received payment of C$493,000 (A$515,000) for its 30% equity in the Bobosso Project in Cote D’Ivoire.

This increases the company’s cash holdings to A$1.7 million.

Predictive elected to convert its equity from 30% to 0% in exchange for the upfront payment, allowing zero liability for future costs and bonus payments on the development of up to three mines.

Bonus payments include a minimum of US$2.15 million upon the first mine being developed on Bobooso and US$4.30 per defined ore reserve ounce of gold.

READ: Predictive Discovery to commence 20,000-metre drill program

Predictive’s managing director Paul Roberts said: “The payment from Progress Minerals is an important milestone for the company.

“It represents the fulfilling of a core tenet of our project generator model by realising value while de-risking our exposure to the project and reducing overall expenditure.

“Importantly, the company retains its interest in the Bobosso Project through potential future payments on development of new mines.

“We will continue to update the market on exploration results from this project.

News flow expected over coming months

“Over the coming months we have a stream of results to announce from partner funded exploration including up to 20,000m of drilling in Burkina Faso.

“Bobosso is just one of a number of projects the Company holds across Burkina Faso and Cote D’Ivoire.

“It’s an exciting time for the company with Predictive retaining a pipeline of early stage exploration work across West Africa.”

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