- Prodigy Gold has completed an A$12 million placement at an offer price of A$0.12 cents per share
- Funds raised from the placement will allow Prodigy to accelerate exploration at its Euro Gold and Suplejack Gold projects, located in the Tanami region
- The placement will contribute to the company’s joint ventures, farm-ins and progressing acquisitions
Prodigy Gold has successfully completed a fully underwritten placement of 100 million shares at an offer price of A$0.12 cents per share to raise A$12 million.
Managing Director Matt Briggs is pleased by the completion of the placement, stating the company is now in a very strong financial position.
“The Board of Directors of Prodigy Gold is very pleased with the response to this placement, which received particularly strong support. We are encouraged by the strong support we have received from new institutional shareholders including numerous high quality domestic and international investors,” Matt said.
The placement launched at an optimal time as Prodigy has recently welcomed a number of new shareholders to its register.
Funds raised from the placement will allow Prodigy to accelerate exploration at its Euro Gold and Suplejack Gold projects, located in the Tanami Region of the Northern Territory.
The placement will also contribute to the company’s joint ventures, farm-ins and progressing acquisitions.
Prodigy entered a farm-in agreement on July 2018 with Newcrest Mining for the Euro Gold Project. Works are currently in progress, with initial activity focusing on the Dune target.
Current and future exploration at Suplejack is aimed at confirming there are multiple structures within a mineralised system that can support a standalone mining operation.
In 2018, Prodigy and Gladiator Resources entered an earn-in joint venture agreement for the North Arunta Project. As part of the agreement, Gladiator can earn up to a 70 per cent interest by spending $6.5 million over 4.5 years.
The offer price represents a 20 per cent discount to the closing price of the company’s shares on 20 August 2019 of A$0.15 cents per share and a 12 per cent discount to the 15-day (VWAP) of the company’s shares of $0.136 per share.
Canaccord Genuity acted as the lead manager, underwriter and book runner. Patersons Securities acted as co-lead manager to the placement.