Shares in Tanami Gold have lost more than half their value after the company emerged from a trading halt to announce a deeply discounted $65.3 million rights issue.

The renounceable five-for-four rights issue will be priced at 20 cents, less than a third of the company's last traded price of 66.5 cents before a trading halt was called last month.

Tanami said the funds would be used to pay off its debt to AP Finance in full and fund the completion of a definitive feasibility study for its Central Tanami project.

The company's biggest shareholder Allied Properties Resources (33.7 per cent), which also owns AP Finance, will take part in the raising.

The company expects to issue a prospectus on the raising on Friday.