Predictive/Robex's Merger Of Equals

• The gold rush continues as Predictive (PDI AU) and Robex (TSX-V: RBX, ASX: RXR) announce a scrip merger to form a West African mid-tier gold play.

• Via a “definitive plan of arrangement“, Robex shareholders will receive 8.667 PDI shares for every Robex share. Upon completion, PDI will hold 51% of shares out, and Robex the remainder.

• The Cohen Group and Eglington Mining (collectively holding 25.2% of Robex) are supportive. The key condition is Robex’s shareholder vote, sometime in December, with a two-thirds threshold.

The Trade:

• This looks clean.

• You could try to go long Robex, short PDI; however both the Aussie and Canadian lines for Robex are illiquid.