Predictive Discovery Limited and Robex Resources have announced a merger to create a leading mid-tier gold producer in West Africa, targeting over 400,000 ounces of annual gold production by 2029. The combined entity, MergeCo, will leverage advanced projects in Guinea and Mali, enhancing scale and capital market presence.
- All-share merger creating a combined entity with A$2.35 billion market cap
- Expected production exceeding 400,000 ounces of gold annually by 2029
- Combined mineral resource base surpassing 9 million ounces
- Kiniero project on track for first gold in December 2025, followed by Bankan development
- Dual listing on ASX and TSX Venture Exchange to boost capital access and investor appeal
Merger Overview and Strategic Rationale
In a significant development for West African gold mining, Predictive Discovery Limited (PDI) and Robex Resources Inc. have agreed to merge via a statutory plan of arrangement, forming a new entity, MergeCo. This all-share transaction is designed to combine two of the region’s most advanced and promising gold projects; Bankan in Guinea and Kiniero in Guinea and Mali; into a single, mid-tier gold producer with enhanced scale and operational synergies.
The merger positions MergeCo with a pro forma market capitalisation of approximately A$2.35 billion and a combined mineral resource base exceeding 9 million ounces of gold. The transaction structure grants Robex shareholders 8.667 PDI shares per Robex share, resulting in a near-equal ownership split of 51% to PDI and 49% to Robex shareholders on a fully diluted basis.
Production and Project Development Outlook
MergeCo is expected to produce over 400,000 ounces of gold annually by 2029, driven by the Kiniero project’s imminent first gold pour scheduled for December 2025 and the subsequent development of the Bankan project. Kiniero boasts a 9-year mine life with average annual production of approximately 139,000 ounces at a competitive all-in sustaining cost (AISC) of around US$1,066 per ounce. Bankan, with a longer 12-year mine life, is forecast to produce about 249,000 ounces annually at a similar AISC, underpinned by a robust definitive feasibility study.
The proximity of these projects within the Siguiri Basin offers opportunities for operational optimisation, including centralized maintenance, integrated fleet management, and coordinated supply chain efficiencies. These synergies are expected to reduce corporate overheads and enhance the combined entity’s competitiveness.
Capital Markets and Governance Enhancements
MergeCo will be dual-listed on the Australian Securities Exchange (ASX) and the TSX Venture Exchange, broadening its capital market reach and investor base. The combined scale and diversified asset portfolio improve the company’s prospects for inclusion in key indices such as the ASX 200 and potentially the VanEck Junior Gold Miners ETF (GDXJ), which could attract institutional investors and passive funds.
The leadership team merges extensive experience in African mining operations and project development, with Andrew Pardey as Non-Executive Chairman and Matthew Wilcox as CEO and Managing Director. The board also includes seasoned executives with proven track records in mine construction and operation across West Africa.
De-risking and Financial Strength
One of the merger’s strategic benefits is the de-risking of Bankan’s development funding by leveraging Kiniero’s cash flows and the exercise of Robex’s in-the-money warrants and options. This financial strength is expected to support Bankan’s capital requirements and reduce reliance on external funding. The combined low-cost profile is projected to generate significant free cash flow once both projects are operational.
Moreover, the enlarged land package and exploration upside across the Siguiri Basin provide potential for resource growth, which could extend mine life and further enhance shareholder value.
Regulatory and Transactional Milestones
The merger is subject to customary regulatory, court, and shareholder approvals, with Robex’s shareholder meeting anticipated in December 2025 and transaction closing targeted for late 2025 or early 2026. Voting support agreements from key Robex shareholders representing approximately 25.5% of shares have been secured, bolstering the likelihood of approval.
While the transaction is structured as a merger of equals, it also includes plans to appeal recent revocations of certain exploration permits (Argo and Bokoro) that represent a small portion of the overall resource base, reflecting ongoing regulatory engagement in Guinea.
Bottom Line?
As MergeCo advances towards completion, its ability to deliver on production targets and capitalise on operational synergies will be critical to unlocking value and reshaping West Africa’s gold mining landscape.
Questions in the middle?
- How will the appeal of the Argo and Bokoro permit revocations impact exploration and resource growth?
- What are the key risks related to regulatory approvals and financing for Bankan’s development?
- How effectively can MergeCo integrate operations to realise anticipated cost savings and production efficiencies?