PDI invests $10M in Awalé Resources for 12.3% stake

Predictive Discovery Limited (ASX: PDI, TSX: PDI) has agreed to invest approximately US$10 million in West African gold explorer Awalé Resources Limited (TSXV: ARIC), acquiring a strategic shareholding of approximately 12.3% in the company on an undiluted basis.

Under a binding subscription agreement, PDI will subscribe for 16,642,352 common shares of Awalé at C$0.85 per share, for a total of approximately C$14.15 million. The issue price represents a premium of approximately 10% to Awalé's five-day volume weighted average price on the TSX Venture Exchange ending July 10, 2026. PDI will fund the investment from cash on hand.

Awalé's flagship Odienné Project covers 2,346 square kilometers across seven exploration permits and applications in north-western Côte d'Ivoire. The project includes a joint venture with a subsidiary of Newmont Corporation, which is sole-funded by Newmont and managed by Awalé. That joint venture hosts an initial inferred mineral resource estimate of 32.4 million tonnes at 1.64 grams per tonne gold equivalent, for 1.71 million ounces gold equivalent across three deposits. Awalé will use proceeds from PDI's investment to advance exploration on its 100%-owned permits.

The transaction is expected to close in late July 2026, subject to TSXV final approval and other regulatory approvals, as well as the execution of an investor rights agreement. Shares acquired by PDI will be subject to a hold period of four months plus one day following closing, under Canadian securities laws.

The investor rights agreement grants PDI participation and top-up rights to maintain its shareholding, along with certain information rights. The parties will also establish a joint technical advisory committee. These rights are suspended if PDI's stake falls below 10% and terminate if it remains below that threshold for 12 consecutive months.

PDI Managing Director and CEO Matthew Wilcox said the Odienné Project is "showing real potential as a future gold mine of significance, with excellent scope for continued growth through expansion drilling and new discoveries."

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