Robex Resources' (ASX:RXR) proposed merger with Predictive Discovery (ASX:PDI) is set to bring together the company's Kiniero project and Predictive's Bankan project in Guinea, according to a Jan. 30 report by Euroz Hartleys.

The deal is expected to be completed in the first quarter and create a well-funded, mid-tier West African gold producer, Euroz said.

The merged firm will also have "strong" near-term cash flows from the Kiniero project and "significant" growth potential from Bankan, Euroz added.

Euroz maintained the company's speculative buy rating and raised its price target to AU$7.60 from AU$6.59.

Shares of Predictive Discovery fell 5% in recent Monday trade.