ASX-listed Predictive Discovery has agreed to undertake a fully underwritten pro-rata non-renounceable rights issue under which eligible shareholders will be able to subscribe for 3 new fully paid ordinary shares for every 5 fully paid ordinary shares at 0.7 cents per share to raise approximately $ 1.7 million.
Predictive Discovery has executed an underwriting agreement with Aurora Minerals Limited, the largest shareholder of the company, under which Aurora has agreed to fully underwrite the rights issue. In addition to the rights issue, the company has received commitments for a placement to sophisticated and professional investors of Hartleys to raise up to $150 000 via an issue of 18.75 million fully paid ordinary shares at 0.8 cents per share.
Aurora has agreed to subscribe for $104 000 worth of shares under the placement increasing its interest in the company to 19.6 % (prior to completion of the rights issue).
Predictive’s managing director, Paul Roberts said: “We are pleased to have secured this funding to continue exploration around our high-grade Bongou deposit, which we think has potential to provide a strong platform for a future mining operation given its shallow, high grade characteristics, and the excellent prospectivity of the region, which we can now continue testing systematically.
“The funds raised from the rights issue and placement will allow the company to undertake a large work program over the next 12 months, including drilling a number of high priority prospects near the Bongou deposit. Given the difficult equity market we are in at the moment, we are thankful for the strong support shown by our major shareholder, Aurora, who share s our confidence in the potential to discover additional high grade gold ounces on our properties in Burkina Faso.”
The funds raised from the rights issue and the placement will be used to fund exploration, including drilling at and around the high grade Bongou Gold deposit in Burkina Faso and the surrounding area, and for working capital purposes.