Matador Mining Completes $16 Million Placement to Fund Cape Ray Gold Project Drilling

THE DRILL SERGEANT: Matador Mining (ASX: MZZ) announced the completion of a raising that delivered proceeds of $16 million.

The funds were raised from the placement of 28.5 million shares at a price of 56 cents per share, which was a 28 per cent premium to the last closing price of Matador shares on 24 June 2021 of 44 cents per share.

Matador explained it was able to issue the New Shares at a premium, as they were issued under the Canadian flow-through share scheme, which provides tax incentives to eligible investors for expenditures that qualify as flow through mining expenditures under the country’s Income Tax Act.

The company indicated the funds raised will enable the company to expand and accelerate exploration activities at the Cape Ray gold project in Newfoundland, Canada.

This increased program is to include expanding diamond drilling from 20,000 metres up to 45,000 metres, increasing the power auger drilling capacity from three to five rigs and increasing the Heli-mag program to 80 kilometres of strike from 40 kilometres.

“I would like to thank both new and existing shareholders for their strong support in this Placement,” Matador Mining executive chairman Ian Murray said in the company’s ASX announcement.

“To have such strong demand highlights the market support for our exploration strategy to systematically test the potential of our Cape Ray Gold Project, in Newfoundland, Canada.

“These additional funds now mean that we can materially accelerate our work program, with the aim of advancing the timing of new discoveries.

“Being able to achieve this is a great result for all shareholders as we reduce dilution whilst also raising additional funds.”