Predictive Discovery fully funded as Lundin and Zijin commit $69.2m to Bankan gold project in Guinea

Predictive Discovery (ASX: PDI) has attracted commitments from Canada’s high-profile Lundin family and China’s Zijin Mining Group to raise $69.2 million for the accelerated development of its flagship Bankan gold project in West Africa.

The raising will take place via a strategic placement priced at $0.265 per share and will see the Lundin family make a total investment of $45.1m for a 6.5% shareholding and Zijin invest $24.1m for a 3.5% shareholding.

The issue price represents a 1.9% premium to the five-day volume-weighted average price (VWAP) of $0.260 and a 4.4% premium to the 30-day VWAP, both as of 31 January.

Bankan fully funded

On completion of the capital raising, Predictive will have a pro forma cash balance of approximately $98m and will be fully funded through to a decision on developing the Bankan project.

The company will apply the proceeds to advance a definitive feasibility study, progress environmental and social programs and conduct early development activities.

Predictive will also allocate funds for regional exploration programs to grow Bankan’s current 5.38-million-ounce mineral resource estimate.

Strategic investments

Predictive managing director Andrew Pardey welcomed the new shareholders to the company’s register.

“Their investment is testament to the quality of the Bankan gold project and the progress we are making towards developing it into a Tier-1 mine,” he said.

“This capital raise provides us with a strong financial platform to accelerate Bankan and allows us to remain fully funded through to a development decision.”

Major players

The Lundin family holds a majority shareholding in a number of individually managed public companies housed under the Lundin Group umbrella.

With a combined market capitalisation of $26.4 billion, these companies focus on the minerals, metals, renewables and energy sectors, with expertise ranging from early exploration to development and production.

Zijin is a large global mining group engaged in the exploration and extraction of metals including copper, gold, zinc, lithium, silver and molybdenum.

The group is listed on the Hong Kong and Shanghai stock exchanges and has a market capitalisation of approximately $93b.

Key gold deposits

Located in the West African coastal country of Guinea, the Bankan project centres on the key NEB and BC gold deposits that account for its entire resource estimate.

Guinea’s Ministère de l’Environnement et du Développement Durable has approved Bankan’s environmental and social impact assessment and issued the requisite certification for Predictive to apply for an exploitation permit.

The approval was considered a significant de-risking step that confirms the government’s support for the project, which sits within the Peripheral Zone of the protected Upper Niger National Park.