Australian miner Predictive Discovery (PDI) has entered into a definitive agreement to acquire all issued and outstanding shares of Canada’s Robex Resources.
The deal will be executed through a statutory plan of arrangement, with PDI completing the acquisition indirectly.
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This all-share A$2.35bn ($1.55bn) deal will create a mid-tier gold producer in West Africa.
As part of the agreement, Robex shareholders will be entitled to 8.667 shares of Predictive Discovery for every Robex share they hold.
Upon finalisation of the transaction, the ownership structure of the merged entity will consist of approximately 51% held by current Predictive Discovery shareholders and 49% by Robex shareholders.
The merged company will continue to be listed on the Australian Securities Exchange and will also apply to list PDI’s ordinary shares on the TSX Venture Exchange.
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By GlobalDataThe production of the merged company is expected to exceed 400,000oz of gold per annum by 2029.
The company will have combined mineral resources of approximately 9.5 million ounces (moz) of gold, including ore reserves of around 4.5moz, with potential for further exploration.
The transaction is expected to stimulate economic growth in Guinea, bolster the local workforce, and improve essential infrastructure and services.
Predictive Discovery’s Bankan project will have its development funding de-risked by utilising cash flows from Robex’s Kiniero project, along with the ongoing exercise of Robex’s in-the-money warrants and options.
The Bankan and Kiniero projects in Guinea are located within a 30km radius.
The increased scale, diversified multi-asset portfolio, and planned dual listing are expected to elevate the combined company’s capital markets profile, positioning it for a potential share price re-rating, stated the companies.
Robex CEO and managing director Matthew Wilcox said: “This combination marks a transformative step for both companies, creating a platform with the scale, assets and capability to deliver long-term value.”
PDI CEO and managing director Andrew Pardey said: “By combining two of West Africa’s largest and most advanced gold development projects and leveraging the proven track record of both management teams in Africa, we are creating a company that positions Guinea to become one of Africa’s top five gold producers.”
The combined leadership team will be led by Pardey as non-executive chairman and Wilcox as CEO and managing director.
In February, Predictive Discovery secured commitments to raise around A$69.2m through strategic private placement from the Lundin family and its associates, and China’s Zijin Mining Group.
