Predictive Discovery has executed an agreement with Progress Minerals in respect of the company’s Burkina Faso property package, including the 184,000 oz Bongou gold deposit.
This will see Predictive’s ownership return to 100% (from a 49% joint venture interest) in the entire Burkina Faso package, creating a far simpler ownership structure, and greater appeal as the Company considers potential divestment opportunities for its Burkina Faso assets.
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Predictive’s holdings in Burkina Faso are in the east of the country and cover approximately 90 km of strike length of the Samira Hill greenstone belt in eastern Burkina Faso.
This belt hosts the 2.5 Moz Samira Hill gold deposit across the border in Niger and contains numerous active artisanal gold mine sites along its length.
The Company will acquire Progress’s 51% interest by the issue of 4,028,477 PDI shares to Progress, valued at $240,0002.
This is considered a low cost but sensible transaction. Importantly, it does not require the company to undertake future work programs on the property package, and therefore holding costs are expected to be modest.
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It is Predictive’s intention to seek a partnership or other ownership structure to take control of these properties, through which the Company can participate in a possible future mine development without being required to fund operations prior to a mine development decision.
Commenting on the transactions, MD Paul Roberts says:
“Given our focus on the rapidly growing Bankan Gold Project in Guinea, the Company has sought to simplify its legacy ownership positions in Cote D’Ivoire and Burkina Faso and, over time, reduce financial commitments wherever possible so that we can maximise our efforts and expenditure in Guinea.
“In Burkina Faso specifically, the previous 51:49 joint venture structure in which neither Progress nor Predictive could commit to significant exploration expenditure was an impediment to advancing the projects.
“This acquisition of Progress’s interest is therefore an important interim step on the way to placing the Burkina Faso project into the hands of a capable and well-funded group which can then re-start exploration and create value for Predictive shareholders while strictly limiting the Company’s future cash commitments in Burkina Faso.
“While we are fully occupied in Guinea, we remain optimistic about the opportunity for new gold discoveries within the Burkina Faso project. We have already discovered the Bongou Gold Deposit and there is substantial potential to define more resources in a number of drilled gold prospects in the surrounding area.”