- Predictive Discovery (PDI) has strengthened its land position within Guinea’s Siguiri Basin with the acquisition of the Argo permit
- Furthermore Predictive’s subsidiary, Kindia Resources has been granted the Bokoro exploration permit
- Argo was granted in October 2018 and is currently being held by Argo Mining
- However, Predictive is able to acquire 90 per cent of the Argo permit through a cash payment of US$100,000 (around A$137,493)
- When a decision to mine has been reached, the company will acquire the remaining 10 per cent in exchange for a two per cent net smelter royalty on production
- Predictive is steady on the market and shares are trading for 7.4 cents each
Predictive Discovery (PDI) has substantially strengthened its land position within Guinea’s Siguiri Basin with the acquisition of the Argo permit.
Furthermore, the company was also granted the Bokoro exploration permit.
Both permits are located along strike from Predictive’s Bankan Project where the company is continuing to expand its gold discoveries.
The 100-square kilometre Bokoro permit has been granted to Predictive’s subsidiary Kindia Resources, while the 58-square kilometre Argo permit was granted in October 2018 and is currently held by Argo Mining.
Following due diligence, which is currently underway, Predictive is able to acquire 100 per cent of Argo through a number of steps.
The first step consists of transferring the ownership of Argo Mining to an Australian subsidiary, Newco, with the original Argo owners holding 100 per cent.
Up to US$100,000 (around A$137,493) will then be paid to the current owners over three phases.
Once US$67,000 (around A$92,120) has been paid, Predictive will own 51 per cent of Newco. Once the full sum has been paid, Predictive will own 90 per cent of Newco.
When a decision to mine has been reached, Predictive will acquire the remaining 10 per cent of Newco in exchange for a two per cent net smelter royalty on mine production.
Predictive may withdraw from the acquisition at the end of the first year after completing geological, geochemical, and geophysical surveys as well as paying US$33,500 (around A$46,060).
Once completed, Predictive will control 35 kilometres of strike length and an area of 358 square kilometres.
Predictive is steady on the market and shares are trading for 7.4 cents each at 12:21 pm AEST.