Predictive Discovery Limited has amended its acquisition terms with Robex Resources, sidelining Perseus Mining’s bid and setting the stage for a combined gold producer targeting over 400,000 ounces annually by 2029.
- Amended exchange ratio sets PDI ownership at 53.5%, Robex at 46.5%
- Perseus Mining’s acquisition proposal no longer deemed superior
- Combined company targets 400koz+ gold production annually by 2029
- Strong shareholder and management support secured for the merger
- Enhanced capital market profile with potential ASX 200 and GDXJ inclusion
Amended Agreement Reshapes Ownership
Predictive Discovery Limited (PDI) has announced a significant amendment to its arrangement agreement with Robex Resources Inc., revising the share exchange ratio to 7.862 PDI shares for each Robex share. This adjustment results in PDI shareholders holding approximately 53.5% of the combined entity, with Robex shareholders owning the remaining 46.5%. The amendment effectively sidelines Perseus Mining Limited’s recent acquisition proposal, which the PDI board now considers no longer superior.
Strategic Merger to Create a Leading West African Gold Producer
The merger aims to combine two of West Africa’s most promising gold projects – PDI’s Bankan Project and Robex’s Kiniero Project. Together, these assets boast combined mineral resources of around 9.5 million ounces and ore reserves of approximately 4.5 million ounces of gold. The combined company targets annual production exceeding 400,000 ounces by 2029, positioning it as a major player in the region’s gold mining sector.
Shareholder and Management Backing Strengthens Deal Certainty
Support for the amended transaction is robust, with key Robex shareholders, including the Cohen Group and Eglinton Mining, alongside all Robex directors and senior management, collectively controlling nearly 24% of Robex shares, committing to vote in favor. PDI’s board unanimously endorses the deal, citing improved medium to long-term value for shareholders and greater transaction execution certainty.
Operational and Financial Synergies Highlighted
The combined entity is expected to leverage cash flows from Robex’s Kiniero Project to fund the development of PDI’s Bankan Project, enhancing financial flexibility. The merger also brings together complementary management expertise with proven track records in West African mining operations, promising operational efficiencies and coordinated development strategies. Additionally, the scale and multi-asset nature of the combined company could lead to inclusion in prominent indices such as the ASX 200 and VanEck Junior Gold Miners, potentially boosting investor interest and share price performance.
Looking Ahead
The transaction remains subject to shareholder approvals and regulatory conditions, with a postponed Robex shareholder meeting now scheduled for 30 December 2025 to allow full communication of the amended terms. Meanwhile, PDI continues to navigate appeals related to certain exploration permits, adding a layer of uncertainty to the near-term outlook.
Bottom Line?
As PDI and Robex move closer to uniting, the West African gold landscape braces for a new heavyweight with ambitious production and growth targets.
Questions in the middle?
- Will the combined company successfully secure all necessary regulatory and shareholder approvals by year-end?
- How will the appeal outcomes for the Argo and Bokoro exploration permits impact project development timelines?
- What are the potential market reactions to the merger’s effect on PDI’s share price and index inclusion prospects?