Predictive Discovery updates market on amended Robex merger

Predictive Discovery releases details of its amended arrangement with Robex, combining two large gold projects in West Africa.

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Key points

  • Predictive Discovery announced an amended merger agreement with Robex, granting PDI shareholders 53.5% and Robex shareholders 46.5% of the combined entity.
  • The merger, preferred over the previous Perseus proposal, combines advanced gold projects in West Africa, enhancing long-term value and financial flexibility.
  • The Robex shareholder meeting is scheduled for 30 December 2025, while PDI shares have surged 194% over the past year.

The Predictive Discovery Ltd (ASX: PDI) share price is in focus today after announcing an amended arrangement agreement with Robex, giving Predictive Discovery shareholders 53.5% and Robex shareholders 46.5% of the merged company. The revised deal is now preferred over the previous Perseus proposal, with clear backing from major Predictive Discovery shareholders.

What did Predictive Discovery report?

  • Predictive Discovery will acquire all Robex shares, offering 7.862 PDI shares for each Robex share
  • Predictive Discovery and Robex shareholders will own about 53.5% and 46.5% respectively of the combined entity
  • Robex shareholders, directors and officers holding around 23.8% of Robex shares have signed amended support agreements
  • The Robex shareholder meeting to approve the deal has been moved to 30 December 2025
  • The previously announced Perseus acquisition proposal is no longer considered superior

What else do investors need to know?

The amended deal strengthens the medium to long-term value for Predictive Discovery shareholders, as it combines two of West Africa's most advanced, large-scale gold projects. Both companies bring extensive development experience, with Robex's team set to support the Bankan Project's ramp-up.

Key benefits from the deal include the potential for production exceeding 400,000 ounces of gold per year by 2029, a combined mineral resource of around 9.5 million ounces, and increased financial flexibility to fund growth. The merged entity may also gain higher visibility in investment indices like the ASX 200 and VanEck Junior Gold Miners.

What did Predictive Discovery management say?

Andrew Pardey, Chief Executive Officer and Managing Director of Predictive Discovery, said:

We are pleased to announce the Amended Robex Arrangement Agreement, which reflects our shared commitment to combine two of the largest, lowest cost and most advanced gold projects in West Africa. After announcing the Perseus acquisition proposal, we received clear written feedback from several of our largest shareholders indicating their support for the Robex merger over the Perseus acquisition proposal in its current form. In light of this feedback and considering the improved terms under the Amended Robex Arrangement Agreement, together with the greater medium to long-term value of the combined company for PDI shareholders and higher transaction execution certainty, the Board has concluded the amended transaction with Robex is in the best interests of the Company and our shareholders. We are excited to move forward with this transaction and look forward to working with Robex to build one of West Africa's leading gold producers.

What's next for Predictive Discovery?

Looking ahead, Predictive Discovery and Robex will work together to finalise the merger, with the Robex shareholder vote scheduled for 30 December 2025. Management see a clear path to creating one of the region's leading gold producers, driven by shared expertise and greater combined financial resources.

Following completion, the new group aims to ramp up production, develop the Bankan Project using ongoing cash flow from Robex's Kiniero Project, and unlock further upside from exploration and operational synergies across West Africa.

Predictive Discovery share price snapshot

Over the past 12 months, Predictive Discovery shares have risen 194%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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