PDI has announced an A$69.2m Strategic private placement with the Lundin Family and Zijin Mining. The Lundin Family will invest A$45.1m to acquire a 6.5% shareholding in PDI while Zijin will invest A$24.1m to acquire 3.5% of PDI. Funds raised will give PDI an A$98m proforma cash position expected to advance Bankan through to FID. Post raise, we estimate Perseus Mining (ASX:PRU, BUY, PT: $4.00) will have their 19.9% shareholding diluted down to ~17.9%. The entrant of these strategic parties on the register is a good outcome for PDI shareholders creating competitive tension for a likely takeover offer emerging from either party. Spot gold price increases lift our Price Target from $0.55 to $0.57 with a Speculative Buy maintained. We expect PDI will likely receive its Exploitation Permit in the next 3-6 months which, in our view, would then trigger an eventual takeover offer in CY2025.
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