Prodigy Gold closes second tranche of private placement, raises $25m

Vancouver-based Prodigy Gold (CVE:PDG) said Wednesday it has closed the second tranche of its previously-announced private placement financing, raising a total of $25 million.
The second tranche consisted of 1.1 million common shares at a price of $0.65 each. The company also said it raised an additional $0.7 million as part of the over-allotment option.
With two tranches now closed, a total of 29.27 common shares have been placed at a price of $0.65 per share, as well 8.0 million flow-through common shares at a price of $0.75 per flow-through common share.
The proceeds from the private placement will be used to fund the company's ongoing exploration and development at the Magino mine project, which is currently being evaluated as an open-pit mining opportunity with the potential for deeper, higher grade production.
The Magino project contains indicated gold resources of 1.924 million ounces and 587,100 ounces of inferred gold. A preliminary economic report on the property estimated a pre-tax net present value of $351 million, and a 49% internal rate of return, using a 5% discount rate.
The proposed operation would have an average annual gold output of over 166,666 ounces a year during a nine year project life, for total gold production of 1.50 million ounces at a cash cost of US$496 per ounce. A full feasibility study is expected early next year.