Struggling Northern Territory gold junior Tanami Gold has launched a heavily discounted $65.3 million rights issue as it seeks to address its precarious financial situation.

A term sheet for the renounceable rights issue was distributed by Patersons Securities yesterday and showed the company is offering five new shares for every four shares held at an issue price of 20¢ a share – 70 per cent less than the stock’s last traded price of 66.5¢.