PDI snaps up 12.3% of Awalé in $14M deal

Predictive Discovery Limited (ASX: PDI, TSX: PDI) has invested $14.15 million in Awalé Resources (TSXV: ARIC). After the deal, PDI will own 12.3% of Awalé.

Awalé is a Canada-based exploration company focused on discovering large-scale copper-gold deposits in northern Côte d'Ivoire. Its Odienné project site comprises 2,346 km² across seven exploration permits. One site holds 32.4 Mt grading 1.64 g/t gold equivalent, totalling 1.71 Moz of contained gold, in a joint venture with a Newmont Corporation subsidiary. 

“Awalé’s management team has done an outstanding job of advancing the Odienné project to a point where it is showing real potential as a future gold mine of significance,” said Matthew Wilcox, the CEO and managing director of PDI.

Investment details

The companies have entered into a binding subscription agreement. PDI will subscribe for 16,642,352 common shares of Awalé at a price of $0.85 per piece for a total investment of approximately $14.15 million.

PDI will also enter into an investor rights agreement with Awalé, granting it the ability to maintain its ownership through participation and top-up rights and certain information in exploration projects. The companies will also form a joint technical advisory committee.

The investment is expected to close in late July, subject to regulatory approvals.

PDI is a West African gold producer. It owns the Kiniero, Nampala and the Bankan gold projects.