Predictive Discovery Ltd (ASX:PDI) has received binding commitments for a conditional placement to raise up to $6.9 million from institutional and sophisticated investors at 5 cents per share.
In addition, the company has launched a non-renounceable entitlement offer for shareholders to raise up to a further $2.1 million at the same price per share, for a total of up to $9 million.
The capital raising will place Predictive in the strongest financial footing it has ever enjoyed, ensuring it is well-funded to carry out an unbridled exploration push on the exciting North-East Bankan gold discovery, within the Kaninko Gold Project in Guinea.
Predictive managing director Paul Roberts said: “This fundraising is a transformational step-change for Predictive, setting us up for the largest drilling program in the company’s history, and putting us on a pathway towards a targeted maiden Resource Estimate on Kaninko by mid-2021.
Use of funds
Funds raised pursuant to the capital raising will be applied to:
- A substantial drill program focused on the recent discovery at North-East Bankan with additional drilling on nearby prospects. The program will map out the full extent of North-East Bankan’s surface footprint, explore the full width of the gold mineralised system and drill it at depth, and will consist of at least:
- 25,000 metres of RC drilling;
- 5,000 metres of diamond drilling; and
- 20,000 metres of auger drilling.
- Targeting a maiden resource estimate at North-East Bankan by mid-2021;
- A metallurgical test work program on the Kaninko Project;
- Ongoing early-stage exploration on the company’s other 100% owned Guinea exploration portfolio; and
- Joint Venture contributions to its projects in Cote D’Ivoire.
Potential for a large, high margin gold mining opportunity
Roberts added: “Our first round of shallow drilling at North-East Bankan has uncovered a new, very wide, shallow gold discovery in the prolific Siguiri Basin, with thick intersections and some excellent grades, starting almost at surface, and open in all directions, all of which points to the potential for Kaninko to evolve into a future large, high margin gold mining opportunity.
“We are grateful to our long-standing shareholders who have supported the Company to date, and again in this capital raising.
“We are also pleased to welcome several domestic and international institutional investors to the register.”
Key dates for the capital raising