Matador raises cash for Canadian exploration
PERTH (miningweekly.com) – ASX-listed Matador Mining will raise A$4.5-million in a share placement to institutional and sophisticated investors to fund greenfield exploration in Newfoundland.
The company on Friday announced that it would place 36.7-million shares, at a price of 12.3c each, in two tranches under the company’s existing placement capacity.
“We are very pleased with the broad-based support we have received from both our existing large shareholders and new institutional investors, adding two new major resource-focused institutional shareholders based in Canada,” said CEO Sam Pazuki.
“This demand highlights the support for and confidence in Matador’s revised strategy that focuses on new major discoveries along one of the largest mineral tenement packages on the multimillion-ounce Cape Ray Shear in Newfoundland, Canada.
“We have recently advanced fieldwork at priority targets within the Malachite target area with an aim to commence inaugural drilling targeted for late summer. We will continue with this work in Malachite as well as other top priority areas such as Bunker Hill, Grandy’s and Hermitage to build a pipeline of drill-ready targets.
“Our exploration programme is in one of the most underexplored, top-tier jurisdictions globally and is designed to unlock the significant value we believe exists for the owners of the business. With a current mineral resource of 837 000 oz grading 2 g/t and with nearly all of this resource close to surface, we have a strong foundation in which to grow gold ounces and advance our projects going forward,” said Pazuki.
In addition to the placement, Matador will also undertake a share purchase plan (SPP) to raise up to A$1-million, allowing shareholders to subscribe for up to A$30 000 worth of additional shares in the company, at 11.5c a share.
The SPP will close on August 5.
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