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PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2012
May 27, 2012
65537_rns_2012-05-27_70ae4b27-efef-4112-b149-f86fcdb18f9b.pdf
Capital/Financing Update
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28 May 2012
ASX Announcement
ABN 11 127 171 877 Level 2, 9 Colin Street WEST PERTH WA 6005 PO Box 1710 West Perth WA 6872 p (08) 9216 1000 f (08) 9481 7939
- ONE FOR FIVE NON RENOUNCEABLE RIGHTS ISSUE TO RAISE UP TO $2M
The Board of Directors of West African-focused gold exploration company, Predictive Discovery Limited ( ASX: PDI ) (“The Company”), announces that a pro rata non-renounceable rights issue to subscribe for one (1) new fully paid ordinary share for every five (5) ordinary shares held by Eligible Shareholders at $0.08 cents per share to raise up to $2,008,886 before costs of the issue. In addition, there will be one free attaching unlisted option for every 2 shares applied for in the rights issue. Each option will have an exercise price of 10 cents to 30 June 2013, 15 cents from 1 July 2013 to 30 June 2014 and 20 cents from 1 July 2014 to the expiry date on 30 June 2015.
A mandate agreement has been executed with Canaccord BGF to be the lead manager to the issue.
New shares issued under the rights issue will rank equally with all ordinary shares already on issue. Under the rights issue, Predictive Discovery will issue up to a maximum of 25,111,081 new ordinary shares, resulting in a total of up to 150,666,486 fully paid ordinary shares on issue.
Acorn Capital (the Company’s largest shareholder) as well as the Company’s Board and Management (together, the Major Shareholders ), have each indicated that it is their present intention to take up their rights under the proposed rights issue. Should the Major Shareholders ultimately elect to take up their rights, approximately $500,000 will be raised from these parties.
Following completion of the capital raising, the Company will be well funded to continue its exploration program.
With a strong in-country technical team, the Board remains confident that Predictive Discovery can continue to grow the established areas of gold mineralisation and potential resource base in Burkina Faso.
The Rights Issue is not currently underwritten. The Directors reserve the right to obtain an underwriter at any stage in accordance with the Corporations Act (Cth) 2001 and the ASX Listing Rules. Subject to any underwriting, the Rights Issue will contain a shortfall facility, to be placed at the directors’ discretion.
The Company does not believe that the issue of shares under the Rights Issue will have a material effect or consequence on the control of the Company. However, eligible shareholders who do not take up their rights will have their proportional interest in the Company diluted.
The timetable and a prospectus setting out further details of the Rights Issue will be issued in the next 2 weeks accompanied by a personalised entitlement and acceptance form and instructions on how eligible shareholders may accept their entitlement. Any eligible shareholder who wishes
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to acquire new shares under the Rights Issue will need to complete the personalised entitlement and acceptance form that will accompany the Rights Issue prospectus.
About Predictive Discovery:
Predictive Discovery Limited (PDI) was established in late 2007 to explore for gold and uranium. The Company is focused principally on exploration for gold in West Africa. PDI has a distinctive technological capability, known as Predictore [TM] , which is designed to increase drill targeting efficiency thereby reducing ore discovery cost. The Company’s major focus is in Burkina Faso, West Africa where it is exploring for large open-pittable gold ore deposits.
For further details please contact: Paul Roberts Managing Director Tel: +61 8 9216 1020 Email: [email protected]
Ian Hobson Company Secretary Tel: +61 8 9216 1000 Email: [email protected]
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