Perseus takes 13.8% stake in Australia’s Predictive Discovery

Perseus Mining Ltd. [PRU-TSX, ASX] has acquired 13.8% of the issued and outstanding shares of Predictive Discovery Ltd. [PDI-ASX] as a strategic equity investment. Perseus did not disclose what it paid for the shares. But a published report said it paid $31.2 million to a LSE-listed mining services company for the equity interest.

Perseus is an Australian company with a focus on Africa, where it currently operates three gold mines. They include the Edikan in Ghana, as well as the Sissingue and Yaoure mines in Cote d’Ivoire. It also owns the Meyas Sand Gold Project in Sudan, where employees were recently withdrawn following an outbreak of armed conflict, another asset is the Nyanzaga gold project in Tanzania.

Perseus shares were unchanged at $2.25 and currently trade in a 52-week range of $2.63 and $1.32.

Predictive is an emerging mineral development company and listed on the Australian Securities Exchange. Predictive’s key asset is the Bankan gold project, a predevelopment project located in Guinea, West Africa. The Bankan gold project has a reported probable ore reserve of 57.7 million tonnes at 1.64 g/t gold, containing 3.05 million ounces of gold.

In addition to the predictive share acquisition, Perseus has an economic interest in approximately 3.45% of predictive shares through cash-settlement equity swaps.

Perseus said it is not currently in discussions with Predictive and, subject to there being no actual or proposed material change in the shareholding of Predictive (including a change of control proposal) or the actions of Predictive, Perseus has no current intention to acquire control or make a takeover offer for Predictive.

“As a deliberate element of our capital management strategy, Perseus continues to assess and, where considered commercially appropriate, deploy our significant reserves of cash and bullion that totalled US$587 million at June 30, 2024, to pursue opportunities that will deliver material growth four our shareholders in coming years,” said Perseus Chairman and CEO Jeff Quartermaine.

“Predictive’s Bankan gold project is an attractive gold development project located in a jurisdiction that has an increasing presence in the gold mining industry,’’ he said. “We are looking forward to working with the Predictive management team and board to help realize the potential of the Bankan gold project.’’

Meanwhile, he said the company is currently focused on the development of its Nyanzaga gold project, which it plans to bring into production by the first quarter of 2027, while continuing to operate the three existing mines in its portfolio, which in the fiscal year 2024 produced 509,977 ounces gold an a weighted average all-in-sustaining cost (AISC) of US$1,053 per ounce.

Perseus added the Nyanzaga gold project to its portfolio via the recent acquisition of OreCorp Ltd. through an all cash, off-market acquisition that provides Perseus with further growth potential.