- Junior gold explorer Predictive Discovery (PDI) has locked in just over $600,000 from sophisticated investors today
- The funds will be used to help support the purchase of the Koundian Project in Guinea, West Africa
- Managing Director Paul Roberts said though the company has other projects, its key focus is Guinea exploration at this point in time
- Today's capital raise takes full advantage of the recent regulatory changes on the ASX which allow a company to increase its share issue by 25 per cent without shareholder approval
- Nevertheless, shares in Predictive Discovery have gone unchanged today, currently sitting grey at 0.6 cents each
Junior gold explorer Predictive Discovery (PDI) has locked in just over $600,000 from sophisticated investors today.
The company has taken full advantage of the recent regulatory changes on the ASX which allow a company to place new shares equivalent to 25 per cent of its total shares without the need for shareholder approval.
The rule change came in the face of the COVID-19 pandemic to help companies shore up their balance sheets as the virus tears through operations.
In Predictive Discovery's case, it means the company was able to issue roughly 122.5 million new shares at 0.5 cents each to raise $612,490.
The new cash will help support the recently-purchased Koundian Project in Guinea.
The Koundian gold project is in the Siguiri Basin in West Africa, which means it shares a home with some major gold projects like AngloGold Ashanti's Siguiri Project.
Predictive Managing Director Paul Roberts said the fresh capital, combined with the Koundian purchase, means the company can put more focus on its Guinea exploration.
"While we retain the benefit of our joint ventures in Cote D’Ivoire and Burkina Faso, providing access to multiple opportunities for gold discovery, our strategy and spending will be increasingly directed towards gold discovery in Guinea, given stronger investor support for our 100% owned projects, the far greater leverage they provide to shareholders and the promising early exploration results that we have been demonstrating," Paul explained.
"This is an exciting time for Predictive and our rapidly evolving portfolio in Guinea," he said.
At the moment, Predictive is awaiting results from drilling at its Kaninko and Kankan permits Guinea before making its next move.
Nevertheless, shares in Predictive Discovery have gone unchanged since the company came out of its recent trading halt. In mid-afternoon trade, company shares are going for 0.6 cents each.