Prodigy Gold NL Targets $6.35M in Share Offer at $0.002 Per Share

Capital Raising Strategy

Prodigy Gold NL (ASX, PRX), a gold exploration company focused on the Tanami region, has launched a non-renounceable entitlement offer to raise approximately $6.35 million before expenses. Eligible shareholders are invited to subscribe for one new share for every share held as of the record date, at a low issue price of $0.002 per share. This capital raise is designed to provide the company with the necessary funding to advance its exploration and development programs.

The offer is partially underwritten by Plutus Prospecting Pty Ltd and APAC Resources Limited, which together provide funding certainty of around $3.06 million. This partial underwriting mitigates some subscription risk, although the final amount raised will depend on shareholder participation and any shortfall placements.

Use of Funds and Project Focus

Funds raised will be directed primarily towards exploration activities on Prodigy Gold’s key projects within the Tanami region. This includes the North Tanami Project, which hosts the Tregony and Hyperion gold deposits, and the Tanami West Project, which includes the Old Pirate and Buccaneer deposits. The company plans to undertake detailed resource delineation, metallurgical testwork, environmental studies, and advance permitting processes.

In addition to exploration, the capital will support ongoing project development, potential acquisitions or divestments, maintenance of tenements, and general working capital needs. The company emphasizes that these plans are subject to change depending on exploration results, regulatory developments, and market conditions.

Shareholder Impact and Dilution

The entitlement offer is non-renounceable, meaning shareholders cannot trade or transfer their rights. Shareholders who do not participate risk dilution of their holdings by up to 50%. The company has outlined detailed scenarios regarding voting power changes, particularly noting that APAC Resources Limited and Plutus Prospecting Pty Ltd may increase their stakes subject to regulatory limits, including the '3% creep' rule under the Corporations Act.

Directors have confirmed their intention to fully subscribe for their entitlements, signaling confidence in the capital raise and company prospects. The timetable anticipates new shares will be quoted on the ASX by 22 July 2025, with allotment and results announced shortly before.

Risks and Regulatory Considerations

The offer booklet provides comprehensive risk disclosures, highlighting exploration risks, funding uncertainties, regulatory and environmental compliance, commodity price volatility, and operational challenges inherent in mineral exploration. The company stresses that investment in its shares remains speculative and advises shareholders to seek professional advice before participating.

Regulatory compliance is a key feature of the offer, with the company relying on prospectus exemptions and ensuring the offer is not extended to ineligible jurisdictions such as the United States. The underwriting agreements contain standard termination clauses linked to market conditions and company solvency.

Market Context and Outlook

Prodigy Gold’s capital raising comes amid a competitive and volatile gold exploration sector, where access to funding and shareholder support is critical for project advancement. The company’s focus on the Tanami region, a known gold province, positions it to leverage exploration success into potential resource development. However, the ultimate impact on share price and shareholder value will depend on subscription levels, exploration outcomes, and broader market conditions.