PERTH (miningweekly.com) – ASX-listed junior Predictive Discovery has welcomed a cornerstone investment by fellow-listed Aurora Minerals.
Aurora would acquire a 17.2% stake in Predictive Discovery by acquiring more than 66.6-million shares currently held by the African Lion 3 Fund, at a price of 1c a share.
African Lion would subscribe for 14.9-million fully paid ordinary shares in Aurora, for 5.9c a share.
Predictive Discovery pointed out that the cash consideration represented an 11% premium to the company’s closing price on July 9, and a 34% premium to the volume-weighted average closing price over the last 30 days.
Predictive Discovery MD Paul Roberts said that the Aurora investment recognised the potential of the company’s project portfolio in Burkina Faso, as well as Cote d’Ivoire.
“As part of the agreement, African Lion has taken a 12.8% stake in Aurora so it will maintain exposure to the upside of its original investment in Predictive Discovery, as we continue our work to uncover the potential of the Samira Hill greenstone belt, in Burkina Faso,” said Roberts.
Aurora MD Martin Pyle has told shareholders that the investment in Predictive Discovery represented the company’s second strategic investment in gold exploration in West Africa.
He noted that the Predictive Discovery investment was also complementary to the objectives of fellow-listed Golden Rim Resources, in which Aurora has a 19.95% shareholding, and which is also operational in Burkina Faso on the same greenstone belt.