Perseus Mining disclosed on Wednesday, December 3, that it has made a formal offer to acquire all outstanding shares of fellow Australian company Predictive Discovery, directly intercepting a previously announced $1.5 billion merger between Predictive and Canada-based Robex Resources, according to Ecofin Agency.
That merger, unveiled in early October, was intended to create a new Guinea-focused gold producer expected to deliver more than 400,000 ounces of gold annually by 2029.
The proposed combination centers on two projects currently under development in Guinea: Predictive’s Bankan mine and Robex’s Kiniero mine.
By submitting its takeover bid, Perseus has inserted itself into the transaction, using its position as Predictive’s largest shareholder, with a 17.8% stake, to pursue full ownership of the company by acquiring the remaining shares.
Perseus stated that the offer represents a fully diluted valuation of approximately $1.4 billion for Predictive Discovery. The Predictive board has already characterized the proposal as “superior” to the existing merger terms with Robex.
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The miner highlighted the strategic growth benefits of the acquisition, noting that Bankan could be integrated into its asset portfolio with projected average production of about 250,000 ounces of gold per year over a mine life exceeding 12 years under current development plans.
Perseus added that the addition would further advance its geographic expansion across West and East Africa, supplementing its operating mines at Yaouré and Sissingué in Côte d’Ivoire, Edikan in Ghana, and the Nyanzaga project in Tanzania, which is scheduled to begin production in 2027.
Despite the bid, the outcome remains undecided. Robex said it will assess the “options available” in response and has five business days to make a counteroffer if it chooses.
Under the terms of the existing merger agreement, either party retains the right to terminate the deal upon payment of a 37 million Australian dollar break fee to the other party.
Perseus has already proposed to fund this amount for Predictive through a secured loan as part of its acquisition offer.
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Image Credit: Junior Mining Network
