Prodigy Gold’s Capital Raise Could Dilute Shareholders Amid Tanami Expansion

Capital Raise to Fuel Exploration Ambitions

Prodigy Gold NL (ASX, PRX) has announced a partially underwritten entitlement offer aiming to raise up to approximately $6.35 million at a share price of $0.002. The offer, which is non-renounceable and open to eligible shareholders in Australia and New Zealand, represents a significant step in funding the company’s ongoing exploration and development activities in the prolific Tanami gold region.

The entitlement offer allows shareholders to subscribe for one new share for every share held as of the record date, with the option to apply for additional shares through a shortfall offer. Major shareholders APAC Resources Limited and Plutus Prospecting Pty Ltd have committed to partially underwriting the offer, collectively backing nearly $3.5 million of the raise. Notably, Plutus Prospecting, led by seasoned executive Liang Zhen (Jally) Lin, has the potential to increase its stake to just under 20%, with rights to appoint a non-executive director if it holds at least 10% voting power.

Strategic Use of Funds

The proceeds from the entitlement offer are earmarked primarily for advancing exploration and development across Prodigy Gold’s key assets. This includes the Tanami North Project, home to the Tregony and Hyperion gold deposits, where the company plans to determine next steps toward future development of recently updated mineral resources. Similarly, the Tanami West Project, which includes the Old Pirate and Buccaneer deposits, will see further assessment of development opportunities and potential mining license applications.

Additional funds will support brownfield exploration at prospects such as Brokenwood, Boco, and Mark’s Rise in the north, and Vampire, Casa, and Blackcat in the west. Environmental studies and metallurgical testwork are also priorities, particularly relating to the Hyperion Mineral Lease application and evaluating processing options from heap leach to conventional carbon-in-leach methods.

Governance and Market Implications

The involvement of Plutus Prospecting as a partial underwriter and potential board appointee signals a strategic alignment with experienced industry leadership. The absence of underwriting fees payable to APAC or Plutus Prospecting suggests a cost-efficient capital raise, while Ignite Equity Pty Ltd’s role as lead manager includes a 6% fee on any shortfall placements, incentivizing active market engagement.

Shareholders who do not participate risk dilution, as the offer is non-renounceable. The timetable spans from the announcement on June 10 through to the final quotation of new shares on July 22, 2025. Investors will be watching closely to see the level of subscription and any subsequent shortfall placements, which could influence shareholding dynamics and the pace of project development.

Overall, this capital raise underscores Prodigy Gold’s commitment to advancing its Tanami projects and positioning itself for future growth in the competitive gold exploration sector.