The Capital Crunch: Predictive Discovery Bankan on $50 million raising

ASX-listed explorers continue to rattle the tin, with Predictive Discovery (ASX:PDI), Hot Chili (ASX:HCH) and Mitre Mining (ASX:MMC) among the companies looking to boost their cash balances as the week comes to a close. 

Predictive is undertaking a placement to raise $50 million, with firm commitments received from institutional, professional and sophisticated investors.  

Under the placement, Predictive will be issuing 263.2 million shares at $0.19 each, representing a 9.5% discount to the last traded price, as well as a 12.9% discount to the five-day volume weighted average price (VWAP) of $0.218.

Predictive, which has a market capitalisation of $436 million, plans to apply funds towards growth activities and advancing the Bankan Gold Project in West Africa. 

Funds will be used for resource definition and near-resource exploration drilling to grow and upgrade the existing resource, as well as exploration drilling to define additional targets. 

The company will also put funds towards an exploration permit application process, ongoing environmental and social activities, as well as completing a Definitive Feasibility Study. 

Canaccord Genuity and SCP Resource Finance acted as joint lead managers and joint bookrunners to the placement, while BMO Capital Markets acted as joint lead manager. 

Hot Chili is seeking to raise $29.9 million via a placement to complete a Prefeasibility Study for the Costa Fuego Copper-Gold Project, as well as complete a water supply business case study and environmental impact assessment. 

Proceeds will also be put towards ongoing exploration drilling and consolidation activities. 

Up to 29.86 million shares will be offered to institutional and professional investors at $1 per share, which represents a 20% discount to the last closing price, as well as an 18.6% discount to the 10-day VWAP. 

Hot Chili, which has a market capitalisation of $149.3 million, appointed Veritas Securities and Cormark Securities as joint lead managers, and BMO Capitals as co-manager of the placement. 

Meanwhile, Mitre Mining is conducting a placement to raise $10.5 million to fund a drilling program and resource growth activities at the 50-million-ounce Cerro Bayo Silver-Gold Project in southern Chile. 

Under the placement, about 22.22 million shares at $0.45 per share will be issued, representing a 9.1% discount to the last traded price on 29 April 2024 and a 7.7% discount to the 10-day VWAP of $0.487. 

A small second tranche of $509,500 worth of shares at the same price will be issued to company directors, consultants and management, subject to shareholder approval. 

Euroz Hartleys and Canaccord Genuity acted as joint lead managers and Westar Capital acted as co-manager. 

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Images: Predictive Discovery
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.