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Predictive Discovery moves to a free carry position at Bobosso

Predictive remains focused on advancing projects in West Africa.
Predictive Discovery moves to a free carry position at Bobosso
The C$0.5 million cash payment will be used to advance other projects

Predictive Discovery Ltd (ASX:PDI) is delivering on its strategy to maximise exploration activity on multiple projects while minimising expenditure.

This reduces the requirement for dilutive capital raisings.

Predictive has now signed a Memorandum of Understanding with Progress Minerals and West African Ventures Investment LLC on the Bobosso project in Cote D’Ivoire.

Under this agreement, Predictive will not be required to fund a 30% share of future joint venture exploration costs and will be entitled to one or more payments in cash and/or shares.

The agreement is subject to compliance with several conditions precedent.

Paul Roberts, managing director for Predictive, commented:

"This development is a natural outcome of Predictive’s prospect generator strategy.

"At Bobosso, following completion of two drill programs in the past year, we have concluded that this complex gold mineralised system is likely to require a very large investment in exploration and evaluation to have a chance of being developed.

"Therefore, in the interests of our shareholders, we have decided to convert our equity to an effective free carry position now and focus Predictive's expenditure on other areas, including three promising gold discoveries elsewhere at Nyangboue/Boundiali, Ferkessedougou North and Bira.

"If one or more mine developments are eventually achieved at Bobosso, the company would consider returning the majority of payments made under this agreement to shareholders."

Key details of the deal

- Progress will pay predictive C$0.5 million in cash on achievement of several conditions precedent and take ownership of its current 30% equity.

- Mine development payments: On the first development of a commercial mining operation on each of the three permit areas, Progress will pay US$10/ore reserve ounce of gold as defined in a bankable feasibility study for the relevant permit to Predictive and West African Ventures Investment.

- The C$0.5 million cash payment will be used to support Predictive’s activities in Cote D’Ivoire, Burkina Faso and Mali.

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