Predictive Discovery Limited (PDI) has announced that it received firm commitments from institutional and sophisticated investors for a $40.4 million placement to drive growth and advance its efforts at the Bankan Gold Project in Guinea, West Africa.
PDI will issue a total of 269 million new shares at an issue price of $0.15 per share to raise a total of approximately $40.4 million.
The issue price of $0.15 represents a 6.3% discount to the last traded price and a 5.5% discount to the five-day volume weighted average price.
The funds raised from the placement will be used to support resource definition drilling that aims to expand and upgrade the existing 4.2 million ounce Mineral Resource at Bankan.
Additionally, it will accelerate regional exploration drilling at several high-priority target areas along Bankan’s structural gold corridor.
The placement will be completed in a single tranche under the company’s current placement capacity as per ASX Listing Rule 7.1.
The Bankan Project has significant regional exploration potential, with a 35 km gold structural corridor that represents the western margin of the Siguiri Basin situated within the permits.
PDI said over the last six months, it increased its focus on regional exploration by completing extensive auger geochemistry drilling, geophysics surveys, geological mapping and ground-truthing.
The company is now preparing drill pads at the Argo prospect, with reverse circulation drilling planned to commence in the first week of June.
According to PDI Managing Director Andrew Pardey, the demand for placement serves as a testament to the quality and potential of Bankan, which the company believes can become a tier-1 gold mine.
“We received strong support from our existing major shareholders, and we continue to enhance the breadth and equity of our share register, with new investors accounting for nearly 50% of the funds raised. PDI is building a deep shareholders base which can support the company through Bankan’s development phase,” Pardey added.
