Prodigy’s Reynolds interests iTech

Prodigy Gold (ASX:PRX) has signed 2 binding tenement sale and purchase agreements with iTech Energy, a wholly owned subsidiary of iTech Minerals (ASX:ITM), to acquire 100% of 3 tenements in the Reynolds Range area of the Northern Territory. 

The latter, which has a market capitalisation of $10.26 million, will pay Prodigy Gold a $40,000 payment as well as a 1% royalty on any mineral or metallic product recovered from the mining area, other than graphite. 

The sale is expected to be completed within 10 business days after all conditions precedent are satisfied or waived with a cut-off date of 31 August 2024. 

Prodigy Gold Managing Director Mark Edwards says divesting the Reynold Range Project is in line with the company’s strategy to divest assets that are considered non-core and reduce tenement holding costs. 

“This will allow Prodigy Gold to focus on its 100% gold projects in the Tanami North project area and follow its exploration plan for the 2024 field season. 

We are excited for iTech to acquire and develop the Reynolds Range project and the agreed royalty will allow Prodigy Gold to partake in any upside if a mine is developed on the project area.”

Meanwhile, iTech Managing Director Mike Schwarz says the acquisition boosts the company’s exposure to copper, gold, rare earths, and lithium.

“Our exploration team plans to build on the excellent exploration work already undertaken by Prodigy Gold, to quickly generate new critical minerals targets within the Reynolds Range project.”

The Reynolds Range project is accessed from the Stuart Highway, 90km north of Alice Springs. The project contains several prospects considered to be prospective for gold, copper, and silver. 

Prodigy Gold is a greenfields and brownfields explorer focused on its portfolio in the Tanami Gold Province. 

As of 31 December 2023, Prodigy Gold had $2.779 million cash and cash equivalents at hand, according to its latest quarterly report.

Write to Aaliyah Rogan at Mining.com.au     

Images: Prodigy Gold
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.