Predictive Discovery has secured firm commitments to raise A$50m ($32.6m), through a placement, from institutional, professional, and sophisticated investors.

This funding is earmarked for the advancement of the Bankan Gold Project in Guinea, with a focus on resource definition and exploration drilling.

For this placement, the company will issue around 263.2 million new shares at A$0.19 each.

This offer price is at a 9.5% discount to the last traded price of A$0.210 on 29 April 2024, and a 12.9% discount to the five-day volume-weighted average price of A$0.218 as of the same date.

Funds raised will support the Bankan Gold Project’s growth, including the definition of its resource and exploration drilling aimed at expanding and upgrading the current mineral resource of 5.38 million ounces (moz).

The company also plans to use the proceeds for aggressive exploration drilling to delineate multiple highly prospective targets.

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Furthermore, the capital will facilitate the application process for the exploitation permit and support ongoing environmental and social initiatives.

The placement will also finance the definitive feasibility study (DFS) for the Bankan Gold Project, which seeks to capitalise on optimisation opportunities identified in the preliminary feasibility study (PFS).

The PFS recently concluded, highlighting a 269,000oz per annum operation over a 12-year lifespan, with a maiden ore reserve of 3.05moz.

It also pinpointed several opportunities that could significantly enhance the technical and financial results initially reported.

PDI managing director Andrew Pardey said: “The equity raise is an outstanding outcome for PDI and places the company in a very strong position to continue enhancing and de-risking our Tier-1 Bankan Gold Project.

“The recent completion of the PFS was a key milestone and confirmed that Bankan can become a large-scale, long-life and low-cost gold mine. These additional funds will allow PDI to undertake the DFS and accelerate the multiple drilling programmes, which are aiming to add gold ounces, enhance the PFS production profile and define new regional deposits in the Argo area. Overall, more than half of the proceeds will be allocated to drilling programmes.

“In parallel, PDI is progressing the critical path Exploitation Permit application process, which is targeted to be completed in the second half of 2024. This is a key milestone for the Bankan Project, and we are looking forward to working closely with the Government of Guinea in developing one of West Africa’s largest gold mines.”