Prodigy raises $12m

Prodigy Gold has raised $12 million via a share placement as the company seeks to advance its exploration projects.

Prodigy raised the funds through the issue of shares at 12 cents per share, which was a 12 per cent discount to its 15-day volume-weighted average price of 13.6 cents each.

Canaccord Genuity and Patersons Securities acted as lead managers to the placement.

The company said the capital raised would fund continued exploration activities at its Tanami projects in the Northern Territory.

In May, Prodigy signed a $14.5 million joint venture and exploration farm-in agreement with Newmont Mining at Tanami.

Under the agreement, Newmont will sole fund up to $12 million in exploration expenditure to earn up to a 70 per cent interest in the Tobruk project, and provide $2.5 million in cash payments to Prodigy.

Shares in Prodigy were down 10 per cent to trade at 14 cents each at 1.30pm AEST.