Predictive Discovery set to acquire Canada’s Robex in merger of equals

Predictive Discovery Ltd. [PDI-ASX] and Robex Resources Inc. [RBX-TSXV, RXR-ASX] have struck a definitive deal to combine in a merger of equal. Under the agreement, PDI will acquire all of the issued and outstanding shares of Robex via a statutory plan of arrangement.

The aim is to create West Africa’s next mid-tier gold producer by combining two of the continent’s largest, lowest cost, and most advanced projects, with combined production exceeding 400,000 ounces annually by 2029. Combined mineral resources will amount to 9.5 million ounces, including ore reserves of approximately 4.5 million ounces with significant exploration upside potential.

Following completion of the transaction, the combined company will remain listed on the Australian Securities Exchange and will apply to list PDI’s ordinary shares on the TSX Venture Exchange. Matthew Wilcox, currently CEO and Managing Director of Robex, will take on the same role at the combined company.

Robex is a Quebec-based gold mining company. It’s material properties consist of the Nampala Project in Mali and the Kiniero Project in Guinea. Kiniero is on schedule to achieve first gold production in December 2025 and is expected to produce 139,000 of gold annually over nine years. Nampala is forecast to produce 46,000 to 47,000 ounces in 2025.

PDI 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. PDI has said Bankan is capable of producing 250,000 ounces annually over a 12-year lifespan and is advancing towards a final investment decision targeted for the second quarter of 2026

The companies said development funding for PDI’s Bankan project will be significantly de-risked by leveraging cash flows from Robex’s Kiniero project, and the ongoing exercise of Robex’s in-the-money warrants and options.

Under the plan of arrangement, Robex shareholders will receive 8.667 PDI shares for each Robex share held. In connection with closing, Predictive experts to issue 2,115 million shares to Robex shareholders, based on the Robex shares currently outstanding. Predictive may also issue up to approximately 497 million shares subject to conversion of any Robex convertible securities into Robex shares prior to the transaction taking effect, including up to 281 million Predictive shares from the conversion of 32.38 million warrants with an exercise price of $2.55 per warrant, which recently had the expiry date accelerated to 18 October, 2025.

Following completion of the transaction, existing PDI shareholders and former Robex shareholders will own approximately 51% and 49% respectively of the combined company on a fully diluted in-the-money basis. The combined market cap of the combined company is estimated at $2.16 billion.

Robex shares rose 2.24% or $0.09 to $4.10 on Monday. The shares trade in a 52-week range of $4.08 and $2.01.