- Predictive Discovery (PDI) has received binding commitments to raise $9 million through a placement and entitlements issue
- Predictive will use the money to advance the North-East Bankan gold discovery at the Kaninko Gold Project in Guinea
- The money will also be used for joint venture contributions in Côte d’Ivoire, exploration at other projects held by the company, and general working capital
- Predictive shares have dropped 8.57 per cent and are trading for 6.4 cents each
Predictive Discovery (PDI) has received binding commitments to raise $9 million through a placement and entitlements issue.
Predictive will use the money to advance the North-East Bankan gold discovery at the Kaninko Gold Project in Guinea.
Primarily, the money will be used for drilling programs, metallurgical test work programs, and a maiden resource estimate.
The money will also be used for joint venture contributions in Côte d’Ivoire, exploration at other projects held by the company, and general working capital.
“This funding 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,” Managing Director Paul Roberts commented.
“Our first round of shallow drilling at NE Bankan has uncovered a new, very wide, shallow gold discovery in the prolific Siguiri Basin … all of which points to the potential for Kaninko to evolve into a future large, high margin gold mining opportunity,” he said.
Placement
For the placement, up to 138 million shares will be issued to institutional and sophisticated investors at a price of $0.05 each.
However, there are some guidelines before this can take place such as settlement is subject to shareholder approval at a general meeting that is expected to be held on June 10.
Further, the placement will not continue if the ASX All Ordinaries closes below 4800 points for two consecutive days, or if it closes below 4800 on the day before the settlement, but this can be waived by the Lead Manager.
Entitlements issue
The entitlements issue will offer all eligible shareholders the opportunity to subscribe for one new share for every 15 existing shares held.
Approximately 42.1 million shares will be on offer at an issue price of $0.05 per share.
Director participation
Chairman Phillip Jackson will receive three million shares expiring on May 2, 2023, and are exercisable at $0.0986 each.
Managing Director Paul Roberts will receive 12.5 million shares which will also expire on May 5, 2023, and have an exercise price of $0.0986.
Non-Executive Director Steven Michael will receive 2.5 million shares which expire on December 19, 2022, and are exercisable at $0.011 each.
Employees will receive 16 million shares which expire on May 5, 2023, and are exercisable at $0.0986 each.
All of these are subject to shareholder approval which will be sought after at the annual general meeting expected to be held later in the year.
Predictive shares have dropped 8.57 per cent and are trading for 6.4 cents each at 11:30 am AEST.