Predictive Discovery (ASX:PDI) has received binding commitments from the Lundin family and Hong Kong Stock Exchange-listed Zijin Mining Group Co (SEHK:2899) through its subsidiary and non-operating division to raise more than $69 million.
The equity will be raised via a single tranche strategic private placement at an issue price of $0.265 per share. Predictive Discovery will issue about 261.2 million ordinary shares to raise $69.2 million.
The issue price is of no discount to the last traded price on 31 January 2025 and is a 1.9% premium to the five-day volume weighted average price of $0.260 and a 4.4% premium to the 30-day VWAP as of the same date.
Lundin will invest $45.1 million to obtain a 6.5% shareholding in the company. Zijin will subscribe for an investment of $24.1 million to obtain a 3.5% shareholding.
Proceeds from the placement will be used to advance the Bankan Gold Project’s Definitive Feasibility Study (DFS), progress environmental and social programs, continue regional exploration programs, and conduct selected early development activities.
Predictive Discovery Managing Director Andrew Pardey says the investment is testament to the quality of the Bankan Gold Project and the progress being made towards developing it into a tier-one gold mine.
“This capital raise provides a strong financial platform for PDI to accelerate the Bankan Gold Project. PDI will be fully funded through to a development decision and will also be able to conduct selected early works and continue our regional exploration programs,” says Pardey.
Predictive Discovery’s pro-forma cash balance will be $98 million upon completion of the placement.
Founded by Adolf H. Lundin more than 50 years ago, the Lundin group of companies comprises separate, individually managed public companies in which the Lundin family is majority or major shareholder through its family trust.
The companies have a combined market capitalisation of C$23.7 billion as of 31 December 2024. They are focused on the minerals, metals, renewables and energy sectors, with expertise ranging from early exploration to development and production.
The Lundin group has invested in a range of mining companies including Faraday Copper (TSX:FDY), Fireweed Metals (TSX-V:FWZ), and Lucara Diamond (TSX:LUC).
The group is now lead by Lukas Lundin’s sons Adam Lundin, Jack Lundin, Will Lundin, and Harry Lundin who represent the third generation along with several other family members.
Zijin is a large global mining group, which is engaged in the exploration and extraction of metals such as copper, gold, zinc, lithium, silver and molybdenum. Zijin is listed on the Hong Kong Stock Exchange and the Shanghai Stock Exchange (SSE:601899) with a market capitalisation of approximately US$58 billion.
Predictive Discovery’s strategy is to identify and develop gold deposits within the Siguiri Basin, Guinea. The company’s key asset is the Bankan Gold Project. A mineral resource estimate of 5.38Moz has been defined to date at the NEB (4.89Moz) and BC (487Koz) deposits, making Bankan one of the largest gold discoveries in West Africa in a decade.
A Prefeasibility Study was completed in April 2024.
Write to Adam Orlando at Mining.com.au
Images: Predictive Discovery
