Predictive Discovery Ltd (ASX:PDI, OTC:PDIYF) has received firm commitments to raise A$50 million in a placement to fund resource definition and exploration drilling at the Bankan Gold Project in Guinea and the completion of a definitive feasibility study (DFS).
The single-tranche placement to institutional, professional and sophisticated investors, which will see PDI issue around 263.2 million new fully paid ordinary shares at A$0.19 per share, received strong support from existing shareholders and introduced a number of new high-quality institutional investors to the register.
Upon completion of the placement, PDI expects to be well-funded with a pro-forma cash position of A$66.5 million, before costs.
The proceeds of the raise will fund continuing growth and advancement of the Bankan Project, including:
- Resource definition and near-resource exploration drilling to grow and upgrade the existing 5.38-million-ounce mineral resource.
- Argo exploration drilling to further define the multiple highly prospective targets.
- The exploitation permit application process and ongoing environmental and social activities.
- Completion of a DFS, including pursuit of multiple value enhancement opportunities identified in the recent pre-feasibility study (PFS).
The recently completed PFS outlined a 269,000-ounce per annum operation over 12 years, with a maiden ore reserve of 3.05 million ounces and strong financials.
Multiple opportunities were also identified which have the potential to significantly improve the technical and financial outcomes reported in the PFS.
An “outstanding outcome”
PDI managing director Andrew Pardey said: “The equity raise is an outstanding outcome for PDI and places the company in a very strong position to continue enhancing and de-risking our Tier-1 Bankan Gold Project.
“The recent completion of the PFS was a key milestone and confirmed that Bankan can become a large-scale, long-life and low-cost gold mine.
"These additional funds will allow PDI to undertake the DFS and accelerate the multiple drilling programs which are aiming to add gold ounces, enhance the PFS production profile and define new regional deposits in the Argo area. Overall, more than half of the proceeds will be allocated to drilling programs.
“In parallel, PDI is progressing the critical path exploitation permit application process, which is targeted to be completed in the second half of 2024.
"This is a key milestone for the Bankan Project, and we are looking forward to working closely with the Government of Guinea in developing one of West Africa’s largest gold mines.
“We are delighted by the demand received for the placement, which was significantly oversubscribed.
"I would like to thank our existing major shareholders for their ongoing support and welcome a number of new high-quality institutional investors to our register.”