Predictive Discovery Ltd (ASX:PDI) is raising up to $2.6 million via a renounceable pro-rata rights issue to eligible shareholders.
The funds raised will be used for Predictive’s exploration programs on new permits in West Africa and to contribute to the Toro Joint Venture (if justified by new results).
Eligible shareholders will be able to subscribe for 8 new shares for every 21 existing shares they hold, at an issue price of $0.042 each, together with 1:1 free attaching listed option.
The new options will have an exercise price of $0.060 each and will expire in November 2019. The rights issue is partially underwritten (to $1 million) by the lead manager.
Phillip Jackson, chairman, commented: “Predictive’s objective is to make multiple large gold discoveries in the highly prospective West African Birimian greenstone belts.
“We have a 7,000 square kilometre ground position in Cote D’Ivoire and Burkina Faso containing resources (e.g. Bongou in Burkina Faso), advanced prospects with numerous gold intercepts (e.g. Bobosso, Cote D’Ivoire; Dave, Burkina Faso) and emerging new discoveries (e.g. Boundiali, Cote D’Ivoire).”
Earlier this week, Predictive commenced its joint venture in Burkina Faso with Canada-based Progress Minerals International Inc.
READ NOW: Predictive Discovery kicks off joint venture for gold in Burkina Faso
The joint venture aims to advance towards a multi-pit mine development on Predictive’s gold prospects in the West African country, covering a regional ground position of circa 1,000 square kilometres.
Progress can earn an initial 51% interest by spending US$1 million (A$1.3 million) by 30 September 2018.
Importantly, Progress has committed to sign a drill contract in the December quarter to test high priority drill targets and to commence the drilling program no later than January 2018.