PDI secures funds for Bankan Gold Project
Predictive Discovery has successfully secured firm commitments from institutional and sophisticated investors for a placement worth A$40.4 million.
The funds raised through this placement will be utilized for the development of the Bankan Gold Project. The placement involves issuing approximately 269.6 million shares at an issue price of A$0.15 per new share. The company plans to allocate the funds towards several key areas of development, including ongoing resource definition drilling to expand and upgrade the existing 4.2 million ounces (Moz) Mineral Resource.
Additionally, they aim to accelerate regional exploration drilling along the Bankan’s 35 km structural gold corridor, starting with the Argo prospects located north of the NEB deposit. Another important objective is to complete the Environmental and Social Impact Assessment (ESIA) and Scoping Study.
Preparations
The placement received strong demand from both existing and new institutional investors, exceeding the size of the placement. The issue price of A$0.15 per share represents a modest 5.5% discount to the 5-day volume-weighted average price, indicating favorable pricing for investors.
Preparations for on-site drill pads at Argo are currently underway, with reverse circulation (RC) drilling planned to commence in the first week of June 2023. Predictive Discovery’s Managing Director, Andrew Pardey, expressed satisfaction with the demand for the placement and emphasized the quality and potential of the Bankan Gold Project, envisioning it as West Africa’s next Tier-1 gold mine.
Pardey also highlighted the support received from existing major shareholders and the addition of new investors, which accounted for nearly 50% of the raised funds. This diverse shareholder base is expected to provide strong support to Predictive Discovery throughout the development phase of the Bankan project.
The company remains committed to securing a mining permit in the first half of 2024. The allocated funds from the placement will be directed towards ongoing resource definition drilling at NEB and BC, as well as completing the ESIA and Scoping Study by late 2023. Furthermore, up to A$20 million of the placement will be dedicated to accelerating regional drilling activities in a results-driven manner. Recent exploration results and drill targeting at Argo have demonstrated the project’s regional potential, and RC drilling at Argo is on track to commence as planned in early June.
