Western Australia-based Predictive Discovery (ASX:PDI) and Canada’s Robex Resources (TSX-V:RBX) are planning to merge in a bid to create a $2.4 billion dual-listed, West Africa-focused gold producer.
Under the deal, Predictive will acquire all of the shares in Robex by offering Robex shareholders 8.667 Predictive shares for every Robex share they own.
This will result in Predictive shareholders owning 51% and former Robex shareholders owning 49%.
The news was welcomed by shareholders, with Predictive’s share price advancing nearly 15% on Monday (6 October) to a new 52-week high of $0.51 and Robex shares on the Australian Securities Exchange (ASX) rising over 3% to an intra-day peak of $4.36.
The merger will provide the combined company with a production profile of over 400,000 ounces per annum by 2029.
Combined resources of the larger company will amount to 9.5 million ounces, inclusive of reserves of about 4.5 million ounces.
Predictive CEO Andrew Pardey says 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, it will create a company that positions Guinea to become one of Africa’s top five gold producers.
“The new, diversified company will not only further de-risk our flagship Bankan Project, but also deliver enduring value for shareholders, the communities where we operate and Guinea as a whole,” Pardey says.
Predictive’s main asset is the Bankan Gold Project in Guinea, which is advancing towards a final investment decision targeted for the second quarter of 2026.
The deal is expected to significantly derisk the project development by leveraging cash flows from Robex’s Kiniero Project, which is on track for first production in the final quarter of this year.
Kiniero hosts a resource of 2.2 million ounces @ 0.96 grams per tonne gold, inclusive of a reserve of 1.41 million ounces @ 0.97g/t.
The operation, which is located next to Predictive’s 5.4 million ounce Bankan project, is expected to average over 150,000 ounces of production each year in the first six years.
Predictive’s Bankan project, meanwhile, is estimated to average about 250,000 ounces of gold output per annum over 12 years once in operation.
The merger already has the support of all Robex directors and the company’s two largest shareholders, which collectively hold a 25.5% stake.
Pardey will act as non-executive Chairman of the merged company, while Robex’s current CEO, Matthew Wilcox, will assume the role of CEO.
The company will retain a primary listing on the ASX and plans to list its shares on the TSX Venture Exchange on completion of the merger.
Write to Angela East at Mining.com.au
Images: Predictive Discovery, Robex Resources
