Predictive Discovery To Continue Aggressive Gold Exploration In Burkina Faso With $2 Million Raising

May 27, 2012 10:15 PM ET
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Predictive Discovery (ASX: PDI) is set to continue with extensive exploration at its projects in Burkina Faso, West Africa, announcing an up to $2 million capital raising.

The company has announced a one for five pro rata non-renounceable rights issue at $0.08 per share.

In late 2011 Predictive commenced an extensive drilling campaign at the Bonsiega and Bangapa Projects in Burkina Faso.

The campaign is aimed at defining a maiden gold resource by the September quarter of 2012.

Earlier this month Predictive discovered a new gold zone at Bonsiega, Prospect 71, where reverse circulation drilling returned a high grade intercept of 4 metres at 7.1 grams per tonne (g/t) gold.

This discovery is along strike from the near surface intersections of 4 metres at 15g/t gold and 2 metres at 7.5g/t gold.

In addition, Predictive Discovery recently expanded its West African portfolio by acquiring a gold project in Cote D'Ivoire.

The Komboro permit contains part of a Birimian greenstone belt which includes active artisanal workings and extensive gold geochemical anomalies.

Reconnaissance soil and bedrock sampling has returned a series of high grade values, ranging up to 52 grams per tonne (g/t) gold.

Capital raising terms

The one for five rights issue will see Predictive issue up to 25.1 million new ordinary shares, which is not expected to have a material effect on the control of the company.

Canaccord BGF has come on board with a mandate agreement to be the lead manager to the issue.

For every two shares applied for in the rights issue, shareholders will receive one free attaching unlisted option.

These options will have an exercise price of $0.10 to June 30, 2013, $0.15 from July 1, 2013 to June 30, 2014 and $0.20 from July 1, 2014 to the expiry date on June 30, 2015.

Already Predictive's largest shareholder, Acorn Capital, and the company's board and management have indicated that they will take up their rights, which would equal about $500,000.

Proactive Investors is a market leader in the investment news space, providing ASX "Small and Mid-cap" company news, research reports, StockTube videos and One2One Investor Forums.

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