Predictive Discovery Ltd (ASX:PDI) has received firm commitments from sophisticated and institutional investors to raise A$10.6 million in an institutional placement with funds to accelerate development at the Bankan Gold Project.
Funds will be used to undertake second phase drilling where the company is targeting a maiden mineral resource estimate, expected by mid-2021.
The Bankan-2 drill program started this week and the company expects to provide a regular flow of drill results over the next several months from this program.
Clear support for strategic plan
Managing director Paul Roberts said: “The strong demand from international and Australian institutions reflects the quality of the Bankan Gold Project.
“This placement will enable us to significantly advance both the NE Bankan and Bankan Creek prospects and demonstrates clear support for our strategic plan to unlock the full value of this asset which continues to demonstrate exceptional scale potential given the broad widths and good grades, and excellent scope for further growth.
“We are especially pleased with the strength of investment interest from North America which was facilitated by Sprott Capital Partners’ key role in widening the international recognition of the Bankan Project’s potential.
“We welcome new institutions and shareholders to the Company as part of the Placement, and acknowledge the strong support received from existing shareholders.”
Euroz Hartleys Limited and Sprott Capital Partners LP were joint lead managers and bookrunners to the placement.
Completion of the placement
The placement will be issued in two tranches:
- The first tranche of 176,785,281 shares is not subject to shareholder approval and will fall within the company’s placement capacity under ASX Listing Rules 7.1 and 7.1A; and
- The second tranche consisting of 12,321,869 shares, which includes PDI Director participation (totalling $90,000) will be issued subject to shareholder approval at a meeting of shareholders scheduled to take place in late November 2020.
Placement shares are expected to settle on Friday, October 30.
New shares issued under the placement will rank equally with existing shares on issue