Predictive Discovery Ltd (ASX:PDI) is out to raise $55 million in a placement cornerstoned by a suite of global institutional investors with another $5 million through a share purchase plan (SPP).
The Guinea-focused gold explorer has received firm commitments to complete the raise after investors backed the company’s environmental, social and governance (ESG) plans for the 3.65-million-ounce Bankan Gold Project.
The placement proceeds will help Predictive:
- Grow the inferred gold resource at Bankan with a fully funded 60,000-metre drill program, doubling historical drilling to date;
- Deliver a scoping study to the Government of Guinea by the end of 2023;
- Complete baseline environmental studies, including a best practice biodiversity management program; and
- Continue to grow a management team capable of developing a tier-one gold asset.
In addition to the institutional placement, Predictive is seeking $5 million in an SPP that’s open to eligible investors.
“One of the most exciting new gold addresses in West Africa”
Predictive managing director Andrew Pardey said demand for the placement underpinned the quality of the Bankan Project.
“The funds raised will allow Predictive to accelerate its comprehensive drilling program and build further on the 3.65 million ounces already discovered, as well as deliver a scoping study which will include our baseline and environmental study results in late 2023.
“Bankan is potentially one of many significant gold deposits and marks the beginning of our journey in developing Guinea’s Siguiri basin into one of the most exciting new gold addresses in West Africa.”
Placement details
Predictive is offering placement shares at 18 cents apiece — a 10% discount to the last traded price and a 9.5% discount to PDI’s five-day volume-weighted average price.
The placement will vest in two tranches, with the first lot of 206 million shares (worth around $37.1 million) to fall under the explorer’s existing placement capacity.
A second tranche, which requires shareholder approval, involves 99 million shares and is worth roughly $17.9 million.
Predictive will bring the tranche to a vote sometime in early July at a general meeting.
Argonaut Securities and Sprott Capital Partners acted as joint lead managers to the placement, with Canaccord Genuity (TSX:CF, LSE:CF) and Euroz Hartleys stepping in as co-managers.
Share purchase plan
Eligible shareholders also have the chance to invest in a $5 million share purchase plan, slated to open on June 7.
Investors can buy up to $30,000 worth of PDI stock at the same price as the placement before the offer closes on June 28.
PDI will announce the SPP results on July 1 before issuing shares a few days later on July 4.
If all goes to plan, the capital raise should wrap up completely by mid-June.