Predictive Discovery invests US$10M in Awalé Resources

• Predictive Discovery has agreed to execute a binding subscription agreement to invest US$10 million into West African gold exploration company Awalé Resources.
• The deal grants Predictive Discovery an approximate 12.3% strategic equity stake in the exploration company.
• The capital will fund advanced exploration across completely owned permits within the Odienné Gold Project district in Côte d'Ivoire.

West African gold explorer Predictive Discovery (ASX:PDI) executed an agreement to make a US$10 million strategic investment to acquire an approximate 12.3% shareholding in Awalé Resources.

The transaction targets the Odienné Project in north-western Côte d'Ivoire, which features a 2,346km2 landholding and an initial inferred mineral resource estimate of 32.4 million tonnes at 1.64 grammes per tonne gold equivalent.

“Awalé is an emerging West African gold exploration and development company, with a large and strategic landholding in Côte d'Ivoire, considered to be one of West Africa's premier mining jurisdictions alongside Guinea,” said Predictive Discovery Managing Director & CEO Matthew Wilcox.

Under the binding subscription agreement, Predictive Discovery will purchase 16,642,352 common shares at a price of CAD$0.85 per share, representing a 10% premium over the five-day volume weighted average price ending on July 10.

Following the announcement, the Predictive Discovery share price was unchanged at $0.25.

The investment company stated it will fund the entire transaction using cash on hand without affecting capital requirements for its existing Bankan Gold Project located in Guinea.

A portion of the targeted landholding is currently managed under a joint venture where a subsidiary of Newmont Corporation holds a 61% interest and sole-funds ongoing drilling exploration.