(Reuters) -Shares of Australia's Predictive Discovery were set for their best session in nearly six months on Tuesday after the gold explorer said that China's Zijin Mining will invest A$24.1 million
Lundin and Zijin Invest in Predictive Discovery, Shares Surge
(Reuters) -Shares of Australia's Predictive Discovery were set for their best session in nearly six months on Tuesday after the gold explorer said that China's Zijin Mining will invest A$24.1 million ($15.00 million), while Lundin family will invest A$45.1 million in it, to acquire a 3.5% and a 6.5% stake, respectively.
Shares of the company gained as much as 13.2% by 0020 GMT and were set for their biggest single-day rise since mid-August, 2024. Meanwhile, the broader benchmark S&P/ASX 200 index was up 0.6%.
Predictive said it received firmed commitments from both parties to raise a total of A$69.2 million at an issue price of A$0.265 per share, the same as the company's last close on Jan. 31.
Proceeds from the placement will be used to accelerate the miner's key asset Bankan Gold Project in Guinea, it said.
Lundin family is a majority shareholder in Lundin Group, which manages public companies, such as Canada's Lundin Mining Corp, that are focused on the minerals, metals, renewables and energy sectors.
($1 = 1.6069 Australian dollars)
(Reporting by Sherin Sunny in Bengaluru; Editing by Alan Barona)
