Prodigy Announces $20.0 Million Financing
May 25, 2011 (Filing Services Canada) --
Prodigy Gold Inc.
(PDG - TSX Venture, KX3 - FWB), (the "Company" or "Prodigy")
is pleased to announce that it has entered into an agreement
with a syndicate of brokers led by Casimir Capital Ltd.
and including National Bank Financial Inc.,
Paradigm Capital Inc. and Byron Capital Markets Ltd.
(the "Agents") to act as agents in connection with a
private placement on a best efforts agency basis of
23,076,923 common shares at a price of $0.65 per share
plus 6,666,667 flow-through common shares at a price
of $0.75 per flow-through common share for aggregate
gross proceeds of approximately $20,000,000.
Under the agreement, the number of flow through common shares
sold in the offering may not exceed the lesser of
(i) 25% of the aggregate number of non flow-through common
shares and flow-through common shares sold in the offering and
(ii) that number of flow through shares that represent
proceeds of $5 million.
As consideration for acting as agents, the Agents will be paid
a commission of 6% of the total proceeds raised upon closing
and issued agents' warrants ("Agents' Warrants") equal to 3%
of the common shares issued pursuant to this offering.
Each Agents' Warrant will be exercisable to acquire one common
share at $0.70 expiring 24 months after the closing date.
The Company has also granted the Agents an over-allotment
option to solicit an additional $5 million in non flow-through
shares, exercisable 48 hours prior to closing.
All securities issued in conjunction with the private
placement will be subject to a four month hold period.
The private placement is subject to acceptance of a filing
to be made in respect of same by the TSX Venture Exchange.
The offering expected to close on or about June 8, 2011.
The proceeds from the private placement will be used to fund
the Company's ongoing exploration and development at
the Magino mine project and general corporate purposes.
This news release does not constitute an offer to sell or
a solicitation of an offer to buy any of the securities
in the United States.
The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended
(the "U.S. Securities Act") or any state securities laws
and may not be offered or sold within the United States
or to U.S.
Persons unless registered under the U.S. Securities Act
and applicable state securities laws, or unless an
exemption from such registration is available.
About Prodigy Gold:
Prodigy is currently evaluating the development of
the Magino mine gold project in Ontario
as an open-pit mining opportunity with the potential
for deeper, higher grade production.
The Magino Gold mine project contains;
Indicated gold resources of 1,924,200 ounces
grading 1.16 gpt gold (51.6 million tonnes),
and 587,100 ounces of Inferred gold resources
grading 1.04 gpt gold (17.5 million tonnes).
A preliminary Economic Assessment (PEA) of the project
shows a pre-tax NPV of $351 million and an IRR
of 49% using a 5% discount rate (available on SEDAR or
Prodigy's web site).
The proposed operation would have an average annual gold
output of over 166,666 ounces a year during a nine year
project life.
Total gold production is estimated to be 1.50 million ounces
at cash costs of approximately US$496 (Cdn$521) per ounce.
Please note: mineral resources that are not mineral reserves
do not have demonstrated economic viability.
A full feasibility study for the proposed open pit mining
project at Magino is scheduled for early 2012.
Bringing the Magino mine project through the feasibility
process and towards production, coupled with the exploration
potential of our Beardmore-Geraldton exploration properties,
are the catalysts to growing Prodigy and building substantial
value for Prodigy shareholders:
Today's Discovery, Tomorrow's Future.
All scientific and technical information for the Magino project
has been reviewed and approved by Tom Pollock, P.Geo.,
Prodigy's Vice President - Exploration,
who is a qualified person under the definitions established
by National Instrument 43-101.
Drill core at Magino is boxed, covered, and sealed at the
drill rig and moved to the Prodigy logging and sample
preparation facilities by Prodigy personnel.
The core is then split down the centre using a typical table
fed circular rock saw normally at one metre intervals.
One half of the core is sent for assay to ALS Chemex,
2090 Riverside Dr., Timmins, ON, P4R 0A2, while the other
half is returned to the core box and stored at
Prodigy's sampling facility in a secure, fenced off, area.
Prodigy QA/QC procedures include the regular use of blanks,
standards and duplicate samples in addition to sending 10%
of the samples off to a second lab for check assays.
Samples assaying >3.0 gpt gold are automatically re-assayed
by the metallic screen method.
Gold assays greater than 40 gpt are capped at 40 gpt when
calculating composite intervals in drill holes.
Drill holes are directed as much as possible perpendicular
to the strike and dip of the mineralization at Magino.
As a rough estimate the true thickness of the above
intercepts is approximately 76%.
On behalf of the Board of Directors
Brian J. Maher
President and Chief Executive Officer
FOR FURTHER INFORMATION, PLEASE CONTACT:
Prodigy Gold Incorporated
Email: ir@prodigygold.com
Website:
http://www.prodigygold.com
tel.: 1-604-688-9006
Fax: 1-604-688-9029
This news release includes certain forward-looking statements or
information---- the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.
To review this press release as a web page, click onto the link
below :
http://www.usetdas.com/PR/prodigyrev25052011.htm
Source:
Prodigy Gold Inc.
(TSX-V: PDG)
http://www.prodigygold.com
Corporate Presentation
May 24, 2011
http://www.prodigygold.com/_resources/prodigy_gold_presentation_24may2011.pdf
May 25, 2011 (Filing Services Canada) --
Prodigy Gold Inc.
(PDG - TSX Venture, KX3 - FWB), (the "Company" or "Prodigy")
is pleased to announce that it has entered into an agreement
with a syndicate of brokers led by Casimir Capital Ltd.
and including National Bank Financial Inc.,
Paradigm Capital Inc. and Byron Capital Markets Ltd.
(the "Agents") to act as agents in connection with a
private placement on a best efforts agency basis of
23,076,923 common shares at a price of $0.65 per share
plus 6,666,667 flow-through common shares at a price
of $0.75 per flow-through common share for aggregate
gross proceeds of approximately $20,000,000.
Under the agreement, the number of flow through common shares
sold in the offering may not exceed the lesser of
(i) 25% of the aggregate number of non flow-through common
shares and flow-through common shares sold in the offering and
(ii) that number of flow through shares that represent
proceeds of $5 million.
As consideration for acting as agents, the Agents will be paid
a commission of 6% of the total proceeds raised upon closing
and issued agents' warrants ("Agents' Warrants") equal to 3%
of the common shares issued pursuant to this offering.
Each Agents' Warrant will be exercisable to acquire one common
share at $0.70 expiring 24 months after the closing date.
The Company has also granted the Agents an over-allotment
option to solicit an additional $5 million in non flow-through
shares, exercisable 48 hours prior to closing.
All securities issued in conjunction with the private
placement will be subject to a four month hold period.
The private placement is subject to acceptance of a filing
to be made in respect of same by the TSX Venture Exchange.
The offering expected to close on or about June 8, 2011.
The proceeds from the private placement will be used to fund
the Company's ongoing exploration and development at
the Magino mine project and general corporate purposes.
This news release does not constitute an offer to sell or
a solicitation of an offer to buy any of the securities
in the United States.
The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended
(the "U.S. Securities Act") or any state securities laws
and may not be offered or sold within the United States
or to U.S.
Persons unless registered under the U.S. Securities Act
and applicable state securities laws, or unless an
exemption from such registration is available.
About Prodigy Gold:
Prodigy is currently evaluating the development of
the Magino mine gold project in Ontario
as an open-pit mining opportunity with the potential
for deeper, higher grade production.
The Magino Gold mine project contains;
Indicated gold resources of 1,924,200 ounces
grading 1.16 gpt gold (51.6 million tonnes),
and 587,100 ounces of Inferred gold resources
grading 1.04 gpt gold (17.5 million tonnes).
A preliminary Economic Assessment (PEA) of the project
shows a pre-tax NPV of $351 million and an IRR
of 49% using a 5% discount rate (available on SEDAR or
Prodigy's web site).
The proposed operation would have an average annual gold
output of over 166,666 ounces a year during a nine year
project life.
Total gold production is estimated to be 1.50 million ounces
at cash costs of approximately US$496 (Cdn$521) per ounce.
Please note: mineral resources that are not mineral reserves
do not have demonstrated economic viability.
A full feasibility study for the proposed open pit mining
project at Magino is scheduled for early 2012.
Bringing the Magino mine project through the feasibility
process and towards production, coupled with the exploration
potential of our Beardmore-Geraldton exploration properties,
are the catalysts to growing Prodigy and building substantial
value for Prodigy shareholders:
Today's Discovery, Tomorrow's Future.
All scientific and technical information for the Magino project
has been reviewed and approved by Tom Pollock, P.Geo.,
Prodigy's Vice President - Exploration,
who is a qualified person under the definitions established
by National Instrument 43-101.
Drill core at Magino is boxed, covered, and sealed at the
drill rig and moved to the Prodigy logging and sample
preparation facilities by Prodigy personnel.
The core is then split down the centre using a typical table
fed circular rock saw normally at one metre intervals.
One half of the core is sent for assay to ALS Chemex,
2090 Riverside Dr., Timmins, ON, P4R 0A2, while the other
half is returned to the core box and stored at
Prodigy's sampling facility in a secure, fenced off, area.
Prodigy QA/QC procedures include the regular use of blanks,
standards and duplicate samples in addition to sending 10%
of the samples off to a second lab for check assays.
Samples assaying >3.0 gpt gold are automatically re-assayed
by the metallic screen method.
Gold assays greater than 40 gpt are capped at 40 gpt when
calculating composite intervals in drill holes.
Drill holes are directed as much as possible perpendicular
to the strike and dip of the mineralization at Magino.
As a rough estimate the true thickness of the above
intercepts is approximately 76%.
On behalf of the Board of Directors
Brian J. Maher
President and Chief Executive Officer
FOR FURTHER INFORMATION, PLEASE CONTACT:
Prodigy Gold Incorporated
Email: ir@prodigygold.com
Website:
http://www.prodigygold.com
tel.: 1-604-688-9006
Fax: 1-604-688-9029
This news release includes certain forward-looking statements or
information---- the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.
To review this press release as a web page, click onto the link
below :
http://www.usetdas.com/PR/prodigyrev25052011.htm
Source:
Prodigy Gold Inc.
(TSX-V: PDG)
http://www.prodigygold.com
Corporate Presentation
May 24, 2011
http://www.prodigygold.com/_resources/prodigy_gold_presentation_24may2011.pdf
My opinions are my own and and DD I post should be confirmed as unbiased
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