- Predictive Discovery (PDI) has received commitments to raise $26.5 million in proceeds, in a placement to tier one investors
- The company will issue up to 331,250,000 shares at 8 cents each, across two tranches
- Directors of PDI have committed to subscribe for $45,000 worth of shares in the placement’s second tranche
- The proceeds from the raise will fund company growth, including a drilling program of at least 110,000 metres over the next 12 months
- Predictive Discovery is up 2.27 per cent and trading at 9 cents per share
Predictive Discovery (PDI) has received commitments to raise $26.5 million in proceeds, in a placement to tier one investors.
The placement specifically focused on institutional, sophisticated, and professional investors, including tier one North American funds with a history of investing in emerging West African gold companies.
The company’s placement is taking place in two tranches, the first of which is not subject to shareholder approval.
Under the first tranche, Predictive Discovery will issue 249,669,873 shares in the company at 8 cents each, for initial proceeds of $19.97 million.
The placement price comes at an 8.38 per cent discount to the five-day volume weighted average price (VWAP) prior to the placement.
The first tranche should be completed on May 25, with the second tranche to follow soon after.
The second tranche is subject to shareholder approval, with a meeting scheduled for late June.
During the second tranche, Predictive Discovery plans to issue up to 81,580,127 shares at 8 cents each, for additional proceeds of roughly $6.53 million.
Directors of the company have also committed to subscribing for $45,000 worth of shares in the second tranche.
Predictive Discovery’s Managing Director Paul Roberts commented on the overwhelming support for the company’s placement.
"The strong participation by tier-1 international and domestic institutional investors, many of which have a strong track record of investing in the West African sector, reinforces our conviction that we have found a truly remarkable project at Bankan – one with a very long runway of growth ahead of it," he said.
"The placement will enable us to commence by far the largest program that we have undertaken to date to deliver key project milestones at NE Bankan and Bankan Creek, as well as test the numerous potentially high-impact exploration targets in the broader Bankan project, beginning with Argo where we already have high-grade in the auger over good intercepts," he added.
In particular, the company confirmed the funds raised would go towards a drilling program of at least 110,000 metres, which is being planned over the next 12 months.
Some funds will also go towards delivering metallurgical test work, as well as starting technical studies and baseline studies for project development.
Predictive Discovery is up 2.27 per cent, trading at 9 cents per share at 11:43 am AEST.