Predictive Discovery is set to receive a significant capital injection from the Lundin family and Zijin Mining Group, prompting speculation of a potential acquisition battle. The entry of these powerful players, coupled with Predictive's recent environmental approval for the Bankan gold project, raises the stakes for Perseus Mining, a major shareholder.
Predictive Discovery is poised to receive nearly A$70 million in an investment round spearheaded by the Lundin family and Zijin Mining Group . This influx of capital has sent ripples through the market, particularly among Perseus Mining , a major shareholder in Predictive. Lundin is injecting $45.1 million at 26.5c per share, securing a 6.5% stake in Predictive. Simultaneously, Zijin Mining Group , a prominent Chinese mining company, is investing $24.1 million at the same price, acquiring a 3.
5% stake. This investment significantly alters the shareholder landscape, reducing Perseus' 19.9% ownership to 17.9%. Perseus had acquired its stake last year from an exiting Predictive shareholder, expressing its commitment to the Bankan gold project's potential.The entry of Lundin and Zijin, both established developers and miners with considerable resources dwarfing Perseus, raises questions about the future of Bankan. It's highly improbable that Perseus, led by Jeff Quartermaine, would remain oblivious to the potential for a bidding war. The question now becomes whether Perseus is willing to engage in this competition. If they choose to, they'll likely need to offer multiples exceeding their previous acquisitions. In 2016, Perseus acquired its flagship Yaoure asset for approximately £64 million, followed by the acquisition of Orca Gold in 2022 for around C$215 million and OreCorp in 2022 for A$270 million. These previous acquisitions involved development opportunities yielding 200,000-300,000 ounces per annum. Currently, Predictive's market capitalization stands at around $700 million.The gold price has more than doubled since 2016, though costs have also risen considerably. The arrival of potential bidders coincides with Predictive receiving environmental approval for Bankan. With a definitive feasibility study in progress for this year, Predictive requires only an 'exploitation' license to commence construction. This license is anticipated within the next 2-3 months. Predictive shares surged 9.5% to 29c in midday trading, valuing the company at $682 million. Perseus shares, however, dipped 1% to $2.84, with a market capitalization of $3.9 billion. Perseus possesses over $1 billion in cash
Predictive Discovery Lundin Family Zijin Mining Group Bankan Gold Project M&A Perseus Mining
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