THE BOURSE WHISPERER: Matador Mining (ASX: MZZ) announced the raising of $5.2 million to support activities at the company’s Cape Ray gold project in Newfoundland, Canada.
Matador Mining raised the cash by way of a private placement of shares to institutional, professional and sophisticated investors at a price of 20 cents per share.
“The placement includes participation by directors of the company, who subscribed for 1.35 million shares, the issue of which will be subject to the approval of Matador shareholders at the company’s next general meeting,” Matador Mining said in its ASX announcement.
The company indicated the proceeds will be put towards the completion of a Scoping Study, which is on schedule to be completed later this quarter, as well as the recommencement of exploration activities at the Cape Ray project.
The capital raising follows a recent increase to the Resource at the Cape Ray project.
The updated Mineral Resource currently stands at 16.7 million tonnes at 2.2 grams per tonne gold and 6.6g/t silver for 1.2 million ounces gold and 3.9 million ounces silver.