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Minerals exploration company Aurora Minerals has announced it will acquire a 17.2 per cent stake in gold exploration company Predictive Discovery
Aurora Minerals will gain more than 66.6mn shares currently held by the African Lion 3 Fund, at a price of US$0.01 a share, the company stated.
African Lion will subscribe for 14.9mn fully paid ordinary shares in Aurora for $0.059 a share, it said.
Predictive Discovery highlighed that the cash consideration represented an 11 per cent premium to the company’s closing price over a 30 day period.
“As part of the agreement, African Lion has taken a 12.8 per cent stake in Aurora so it will maintain exposure to the upside of its original investment in Predictive Discovery, as we continue our work to uncover the potential of the Samira Hill greenstone belt, in Burkina Faso,” said Predictive Discovery MD Paul Roberts.
Martin Pyle, Aurora MD, has informed shareholders that the investment in Predictive Discovery was in line with the company’s second strategic investment in gold exploration in West Africa.
Aurora has a 19.95 per cent shareholding and which is also operational in Burkina Faso on the same greenstone belt.