Australian gold producer Perseus Mining (TSX: PRU; ASX: PRU) is increasing its stake in Predictive Discovery (ASX: PDI), a BlackRock-backed company advancing the Bankan gold project in Guinea.
The Perth-based miner’s holding in Predictive Discovery has grown to 19.9%, following its initial acquisition of a 13.82% interest in August. Despite the move, Perseus noted it had “no current intention” of seeking control or launching a takeover bid for the gold exploration company.
Predictive stock rose 9% or A2¢ per share on the news to A24¢. The junior has a market cap of A$564 million.
The transaction comes just a few months after Africa-focused Perseus completed the takeover of a gold asset in Tanzania through its acquisition of OreCorp, with a focus on bringing the Nyanzaga project into production by early 2027.
Predictive is securing government permits for its flagship Bankan gold asset in Guinea, where it expects to begin production in 2028. The project hosts 3 million oz. in probable reserves (57.7 million tonnes grading 1.64 grams gold per tonne) and could produce 270,000 oz. per year.
Predictive, which describes the Bankan gold discovery as the largest in the region in a decade, is working on a feasibility study for the asset, and aims to secure a mining permit next year.
According to a prefeasibility study released in April, the US$465-million project has a net present value (using a 5% discount rate) of US$668 million and an internal rate of return of 25.4% at a conservative gold price of US$1,800 per oz.
Before Perseus acquired an interest, asset managers BlackRock Inc. and T. Rowe Price Group Inc. were Predictive’s biggest and third-biggest shareholders, respectively.
Perseus operates three gold mines in Ghana and Ivory Coast and has gold projects in development in Tanzania and Sudan.
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