Prodigy Gold (ASX:PRX) reports it is raising up to $11.65 million in a rights issue to help the company complete exploration work on projects within its portfolio.
The fully underwritten renounceable pro-rata rights issue is at an issue price of $0.01 per new share. The rights issue offers the right to take up 2 new shares for every 1 share held as of Monday 12 September 2022.
Diversified financial services provider Pulse Markets will fully underwrite the rights issue.
Major shareholder APAC Resources has committed to sub-underwrite the offer to about $9.71 million
Major shareholder APAC Resources has committed to sub-underwrite the offer to about $9.71 million (including its entitlement). Accordingly, the offer will raise a maximum of approximately $11.653 million. There is no minimum subscription for the offer.
The capital raised will help fund works on assets such as the Hyperion area, which includes projects at Tregony and Hyperion, including detailed reviews of current and historic Mineral Resources in this project area.
At Lake Mackay, the funds will be used fulfilling its sole funding commitment, as well as any warranted follow up work from the recently completed drilling.
It will also be used to repay the short-term debt facility of $2.5million and costs of that facility, as well as for general working capital requirements.
The issue price represents a discount of about 30% to the volume weighted average market price of Prodigy shares on the 5 ASX trading days on which those shares traded up to and including 5 September 2022.
Prodigy reports the maximum number of shares to be issued is 1,165,255,212 based on the undiluted share capital of Prodigy as at the close of trade on 6 September 2022.
The rights issue is renounceable, meaning that shareholders’ rights to subscribe for new Prodigy shares are transferable.
The closing date of the rights issue is Monday 26 September 2022.
Write to Adam Orlando at Mining.com.au
Images: Prodigy Gold Ltd & iStock
