Predictive Discovery and Robex sign definitive merger agreement

Core Viewpoint - Predictive Discovery (PDI) has agreed to acquire Robex Resources in a deal valued at A$2.35 billion ($1.55 billion), aiming to create a mid-tier gold producer in West Africa [1][2]. Group 1: Transaction Details - The acquisition will be executed through a statutory plan of arrangement, with PDI completing the acquisition indirectly [1]. - Robex shareholders will receive 8.667 shares of Predictive Discovery for each Robex share they hold [1]. - The ownership structure post-transaction will consist of approximately 51% held by current Predictive Discovery shareholders and 49% by Robex shareholders [2]. Group 2: Production and Resources - The merged company is expected to produce over 400,000 ounces of gold annually by 2029 [2]. - Combined mineral resources will total approximately 9.5 million ounces of gold, including ore reserves of around 4.5 million ounces, with potential for further exploration [3]. Group 3: Economic Impact and Project Development - The transaction is anticipated to stimulate economic growth in Guinea, enhance the local workforce, and improve essential infrastructure and services [3]. - Development funding for Predictive Discovery's Bankan project will be supported by cash flows from Robex's Kiniero project, along with the exercise of Robex's in-the-money warrants and options [4]. Group 4: Strategic Positioning and Leadership - The increased scale and diversified multi-asset portfolio are expected to enhance the combined company's capital markets profile, potentially leading to a share price re-rating [5]. - The leadership team will be composed of Andrew Pardey as non-executive chairman and Matthew Wilcox as CEO and managing director [5]. Group 5: Recent Financial Activities - In February, Predictive Discovery secured commitments to raise approximately A$69.2 million through a strategic private placement from the Lundin family and its associates, and China's Zijin Mining Group [6].