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Predictive Discovery and Robex, two gold mining companies, will merge for $1.5 billion

Predictive Discovery, an Australian gold miner, and Robex Resources of Canada have announced that they will merge their companies in a A$2,35 billion (1.55 billion) all-share transaction. This merger will create a mid-tier producer of gold in West Africa.

According to a joint announcement released late Sunday, Robex shareholders receive 8.667 shares of Predictive for every Robex share. This gives them approximately 49% ownership in the combined company.

The new company is listed in Sydney, and will seek a dual listing at the TSX Venture Exchange of Canada.

The combined project will produce more than 400,000 ounces of gold annually by 2029. This is supported by resources of 9.5 million and reserves of 4.5 million.

Gold mining firms are consolidating as they leverage high margins through mergers and purchases.

The two miners announced that Robex's Kiniero, set to start production in December this year, would help fund the development of Bankan. Bankan is aiming for a final decision on investment in mid-2026.

Guinea, known more for its bauxite or iron ore than gold, has attracted renewed interest in the exploration of gold despite long-standing challenges from artisanal mines and recent regulatory crackdowns.

Fortuna Mining of Canada, for instance, has signed a joint-venture with DeSoto Resources in Australia to explore the Siguiri Basin in northeastern Guinea.

Matthew Wilcox, CEO of Robex, will be the new leader of the merged firm. Andrew Pardey, chief executive officer at PDI will also lead it.

Cohen Group and Eglinton Mining hold 25% each of Robex. The deal is expected to be completed by the end of the year, subject to court and shareholder approvals. (1 Australian dollar = 1.5175 dollars) (Reporting and editing by Clara Denina, Joe Bavier and Maxwell Akalaare Adombila)

(source: Reuters)