Predictive Discovery secures underwriter in one for eight rights issue

Predictive Discovery (ASX: PDI) is set to receive close to A$2.6 million as the company's recently announced one for eight rights issue has now been underwritten by Shaw Corporate Finance.

The rights are priced at $0.185, which is the same price as the 14.1 million shares placed to cornerstone investor Acorn Capital in mid-August - which will also raise around $2.6 million.

The funding injection provides a major boost to the company's exploration activities at the Bonsiega Project in Burkina Faso.

Predictive is now poised to be very well funded - and hold over $8.5 million in cash.

Paul Roberts, managing director of Predictive commented on the underwriting, "We will deploy the funding to pursue our exploration activities in Burkina Faso that have yielded highly encouraging results in the 2011 drilling programs to date.”

Some of the results Roberts is eluding to include broad highlights such as:

- 46 metres at 1.7 grams per tonne (g/t) gold from 22 metres, including 26 metres at 2.7g/t gold;
- 46 metres at 1.4g/t gold from 16 metres, including 8 metres at 4.0g/t gold; and
- 14 metres at 3.7g/t gold from 66 metres.

Predictive will kick-off new exploration at the project in November after the wet-season, which will comprise an extensive 18,000 metres of reverse circulation and 3,000 metres of diamond drilling.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19103/predictive-discovery-secures-underwriter-in-one-for-eight-rights-issue-19103.html