Predictive Discovery Ltd (ASX: PDI) and Robex Resources Inc (ASX: RXR) have announced plans to merge, creating a West Africa-focused gold company worth more than $2 billion.
The companies announced on Monday morning that they had entered into an agreement to combine "in a merger of equals" under which Predictive Discovery would acquire all of the shares in Robex, which is listed on the Toronto and Australian stock exchanges.
Under the plan, Robex shareholders will receive 8.667 Predictive Discovery shares for each Robex share they own.
The new company will be 51% owned by Predictive Discovery shareholders and would be valued at about $2.35 billion.
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Merger to create significant scale
Predictive Discovery's key asset is the Bankan Project in Guinea, which the company said was advancing towards a final investment decision targeted for the second quarter of 2026.
That project is expected to produce 250,000 ounces of gold per year over 12 years.
Robex is currently constructing the Kiniero Project in Guinea, "which is on schedule to achieve first gold production in December 2025 and is expected to produce an average of 139,000 ounces per annum over nine years''.
Robex also operates the Nampala Gold Mine in Mali, which is forecast to produce 46-47,000 ounces of gold this calendar year.
The companies said in a joint statement that they were on a pathway to becoming one of West Africa's leading gold producers, combining two of the "potentially largest, lowest cost and most advanced gold projects in West Africa, enhancing scale, access to capital, strategic relevance and competitiveness''.
The combined company is expected to have more than 400,000 ounces per annum of production by 2029, combined mineral resources of approximately 9.5 million ounces of gold and combined ore reserves of approximately 4.5 million ounces.
The companies said the Robex management team were ready to move from the Kiniero Project's construction to the Bankan Project, "applying lessons learned and optimising workforce deployment''.
Predictive Discovery Managing Director Andrew Pardey said the merger made good sense.
By combining two of West Africa's largest and most advanced gold development projects and leveraging the proven track record of both management teams in Africa, we are creating a company that positions Guinea to become one of Africa's top five gold producers. The new, diversified company will not only further de-risk our flagship Bankan Project, but also deliver enduring value for shareholders, the communities where we operate and Guinea as a whole.
Robex Managing Director Matthew Wilcox will lead the merged company, while Mr Pardey will become Chair.
The deal will require the approval of two thirds of the votes cast by Robex shareholders at a special meeting. It will not require approval by Predictive Discovery shareholders.
The deal is expected to be finalised in December this year or early next year.
Predictive Discovery shares were unchanged on 44 cents while Robex's ASX-traded shares were 3.8% lower at $4.07.
