Australian mining company Predictive Discovery has secured commitments to raise approximately A$69.2m ($42.9m) through strategic private placement from the Lundin family and its associates, and China’s Zijin Mining Group.
The Lundin family holds a majority stake in the Lundin Group, which oversees public companies such as Canada’s Lundin Mining.
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The placement, set to be completed in a single tranche, will see Predictive Discovery issue around 261.2 million ordinary shares at A$0.265 per share.
The Lundin family will subscribe for 170.1 million shares for an investment of approximately A$45.1m to acquire a 6.5% shareholding in Predictive Discovery.
Zijin will subscribe for 91.1 million shares for an investment of A$24.1m to acquire a 3.5% stake in Predictive Discovery.
The funding will be used to advance the development of Predictive Discovery’s Bankan Gold Project in Guinea, in addition to providing general working capital for the company.
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By GlobalDataThe allotment and trading of the issued shares will start on 10 February 2025.
After the placement’s completion, Predictive Discovery’s pro-forma cash balance will stand at approximately A$98m.
Predictive Discovery managing director Andrew Pardey said: “We are delighted to welcome the Lundin Family and Zijin as strategic shareholders in Predictive Discovery. Their investment is a testament to the quality of the Bankan Gold Project and the progress PDI (Predictive Discovery) is making towards developing it into a tier-1 gold mine.
“We look forward to working collaboratively with the Lundin Family and Zijin, together with our other shareholders and stakeholders. This capital raise provides a strong financial platform for PDI to accelerate the Bankan Gold Project. PDI will be fully funded through to a development decision and will also be able to conduct selected early works and continue our regional exploration programmes.”
The proceeds from this placement will support the completion of the definitive feasibility study for the Bankan Gold project and advance environmental and social programmes.
The funds will also be used towards the ongoing regional exploration programmes to expand the current 5.38 million ounce mineral resource estimate of the project and commence selected early development activities.
These activities include front-end engineering and design, ordering of long-lead items and initial earthworks.
Herbert Smith Freehills has provided legal advisory services to Predictive Discovery for this strategic placement.
In May 2024, Predictive Discovery raised A$50m through a placement from institutional and professional investors to fund the Bankan Gold Project.
