PDI Gold backs Skylark’s next Zaranou drilling phase with A$5.1m investment

PDI Gold takes strategic stake in Skylark

Skylark Minerals Limited (ASX:SKM) has secured A$20 million from institutional and sophisticated investors, giving the Côte d’Ivoire explorer the funding to pursue its next drilling campaign at Zaranou. The placement includes a A$5.1 million investment from PDI Gold Limited (ASX:PDI), which is expected to emerge with a 9.9% interest in Skylark.

The new shares will be issued at A$0.24, a 5.5% premium to Skylark’s last traded price and above its five-day and 10-day volume-weighted average prices. That pricing gives the company an indicative undiluted market capitalisation of A$51.38 million, although the share count will rise from 130.8 million to about 214.1 million if both placement tranches complete.

Zaranou resource growth sets the funding target

“In October, Skylark announced a more than threefold increase in the in the Zaranou Inferred Mineral Resource, which now stands at 29.0Mt at 1.28g/t Au for approximately 1.20Moz…”

The capital arrives after Skylark reported a sharp increase in Zaranou’s Inferred Mineral Resource, which now stands at 29.0 million tonnes grading 1.28 grams per tonne gold for approximately 1.20 million ounces. The October estimate followed 85 reverse-circulation holes totalling about 15,888 metres at M’Basso, which contributed roughly 873,000 ounces to the broader resource.

M’Basso has been defined across about two kilometres of strike and remains open along strike and at depth, according to the announcement. Skylark says the current resource covers only a relatively small part of the wider prospective corridor, leaving the next programme to test both extensions of known mineralisation and targets that have not yet been systematically drilled.

Drilling programme will span Central, M’Basso and regional targets

“With the existing Mineral Resource established across a relatively small portion of the prospective Zaranou corridor, significant opportunities remain to expand the known…”

Funds will principally support reverse-circulation and diamond drilling at Zaranou Central, including depth extensions and the corridor running from Ehuasso through Coffee Bean to M’Basso. The programme also includes reverse-circulation drilling at M’Basso South and regional exploration across the wider project area.

PDI Gold brings a producing West African platform to the register; its latest quarterly update reported US$282.9 million in revenue and US$405 million in cash and bullion, despite weaker production at Nampala. The investment therefore places an established regional operator alongside Skylark as it attempts to convert early resource growth at Zaranou into a larger exploration story.

Second placement tranche awaits shareholder approval

About A$7.85 million of the placement, representing 32.7 million shares, is intended to proceed under Skylark’s existing ASX placement capacity. The remaining A$12.15 million, comprising approximately 50.6 million shares, requires approval at an extraordinary general meeting expected in early December. Director commitments of A$2.05 million are also subject to that approval.

PDI Gold’s subscription is split broadly between the two tranches. For 24 months, Skylark must use reasonable endeavours to give PDI Gold advance notice of future capital raisings and a reasonable opportunity to participate on terms no less favourable than those offered to other investors, while PDI Gold is subject to a standstill preventing it from increasing its relevant interest above 9.9%, subject to standard exceptions.