Matador Mining raises $5 million in oversubscribed placement for exploration at Canadian gold project
Wednesday, 3 April 2019 Matador Mining Ltd (ASX:MZZ) has completed an oversubscribed placement to sophisticated and professional investors raising $5 million, which will be used in an upcoming exploration program aimed at enhancing the 1.02 million ounce gold resource at Cape Ray Gold Project in Newfoundland. Former executive chairman of Regis Resources Limited (ASX:RRL) Mark Clark and other WA mining figures such as Nick Giorgetta are cornerstone investors in the placement. Matador has also reached a conditional agreement to acquire the remaining 20% of the Cape Ray project and upon completion will own 100% of the site. Placement enhances exploration opportunities Matador non-executive director Grant Davey said: “The Matador team is delighted to have Mark Clark and other WA gold mining figures cornerstone this $5 million placement. “Their enthusiasm for the opportunity presented by the Cape Ray project validates the current project status and highlights the project’s potential. “This placement allows the Matador team to further explore and develop the Cape Ray project as well as investigate other gold opportunities in Canada, in fulfilling our company strategy of building a world-class gold producer in a first world jurisdiction. “In addition to the placement, it has been agreed that the outstanding 20% interest in the Cape Ray project will be acquired from Maple Mining Pty Ltd, ensuring that 100% of the project is owned by the company.” READ: Matador Mining exceeds expectations in first metallurgical test program at Canadian gold project The placement is being carried out in two tranches, the fist of which comprises the issue of 13.2 million shares at a price of 16 cents per share. Investors in the tranche one placement will receive one free attaching option for every one share subscribed for. The tranche one options will have an exercise price of 23 cents with an expiry date that is three years from the date of issue. READ: Matador Mining lifts gold resource 36% to more than 1 million ounces at Canadian project A second tranche comprising the issue of 18.02 million shares at a price of 16 cents per share, is subject to the approval of Matador shareholders and investors will receive one free attaching option for every one share subscribed for. The tranche two options will have an exercise price of 23 cents with an expiry date that is three years from the date of issue and represents a discount of 16% to the last closing price of 19 cents per share on March 29, 2019. Maple holds 20% of the issued share capital of Matador Canada, which holds the tenements that comprise the Cape Ray project. Subject to the approval by Matador shareholders of the tranche two placement and the issue of the tranche one and tranche two options, Matador will issue the vendors 13.47 million Matador shares in consideration for the acquisition of the remaining 20%. On completion, the company’s ownership in Matador Canada will increase from 80% to 100%.