PDI Gold (ASX:PDI) is set to acquire a 9.9% stake in Skylark Minerals (ASX:SKM) through a $5.1 million strategic investment, with settlement of the first tranche scheduled for 6 November.
The placement forms part of Skylark’s two-tranche, $20 million capital raising at $0.24 per share, under a subscription agreement executed on 30 October.
Tranche one comprises about 9.3 million shares for $2.2 million. Tranche two covers 11.9 million shares for $2.9 million and settles in early December, subject to Skylark shareholder approval.
Skylark intends to use the proceeds to increase its interest in the Zaranou Gold Project in Côte d’Ivoire from 51% to 90%, expand the mineral resource estimate at Zaranou Central through drilling, and advance earlier-stage exploration across regional prospects.
Executive Chair Nikolai Zelenski says the company welcomes PDI Gold’s investment, alongside support from new investors and existing shareholders.
“This very strong support comes at a particularly exciting stage in the advancement of our Côte d’Ivoire gold portfolio,” Zelenski shares.
PDI Gold CEO and Managing Director Matthew Wilcox describes Skylark as “an emerging West African gold exploration company”, with Zaranou offering “significant upside along the [company’s] nearly 50km of prospective strike.”
Under the agreement, Skylark will use reasonable endeavours over the next 24 months to provide PDI Gold advance notice of, and participation rights in, future pro-rata equity raisings. The agreement also includes a 24-month standstill provision.
PDI Gold will fund the transaction entirely from existing cash, preserving development capital for its Bankan Gold Project in Guinea.
Still the beginning for Zaranou
Zelenski says PDI Gold’s investment “follows the excellent progress we have achieved at Zaranou”.
On 19 October, Skylark reported an updated inferred mineral resource estimate for Zaranou of 29 million tonnes grading 1.28 grams per tonne gold, containing 1.2 million ounces. This more than triples the project’s contained gold within 12 months of its acquisition.
Zelenski notes that the company is still in the ‘early stages’ of defining the broader mineralised system at Zaranou.
“The Central Zone, hosting our mineral resource, covers a relatively small portion of the extensive prospective corridor and remains open along strike and at depth.
“In 2027, we aim to further grow the mineral resource while progressively testing the scale and potential of the broader licence.”
PDI Gold is an Australian-listed West African gold producer and developer with projects in Guinea and Mali.
Skylark Minerals is an Australian mineral explorer and developer with projects in Côte d’Ivoire, Australia, and Brazil.
Write to Paula Fabe at Mining.com.au
Main image: Skylark Minerals
