leadf
logo-loader
viewMatador Mining Ltd
(
ASX:MZZOTCQX:MZZMF
)

Matador Mining raises A$16 million at a premium to expand Cape Ray Gold Project drill program

The proceeds from the placement will be used to expand and accelerate exploration activities at the Cape Ray Gold Project in Newfoundland, Canada.

Matador Mining Ltd - Matador Mining raises A$16 million at a premium to expand Cape Ray Gold Project drill program
The issue price of A$0.56 per share represents a 28% premium to the last closing price of Matador.

Matador Mining Ltd (ASX:MZZ) (OTCMKTS:MZZMF) (FSE:MA3) has raised A$16 million through the placement of 28.5 million shares at a price of A$0.56 per share.

The issue price of 56 cents per share represents a 27.3% premium to the last closing price of Matador shares on June 24, 2021, of 44 cents per share and a 16.7% premium to the 10-day volume-weighted average price of 48 cents per share.

Matador was able to issue shares at a premium as the new shares were issued under the Canadian flow-through share regimes, which provides tax incentives to eligible investors.

The placement witnessed strong demand from both international as well as Australian institutional investors.

Matador’s shares rose as much as 13.7% on Wednesday to touch an intra-day high of 50 cents in early trade.

Use of funds

The company plans to use proceeds from the placement for accelerating exploration activities at the Cape Ray Gold project including:

  • Increasing diamond drilling from 20,000 metres to 45,000 metres;
  • Increasing power auger drilling from three rigs to five rigs;
  • Expanding Heli-mag program from the previous 40 kilometres to 80 kilometres of the strike;
  • Inaugurating winter exploration program; and
  • Pre-Feasibility Study and permitting activities.

“Support for our exploration strategy”

Matador executive chairman Ian Murray said: “I would like to thank both new and existing shareholders for their strong support in this Placement.

“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.

“I would also like to thank Matador’s corporate and finance team for working tirelessly behind the scenes to complete the Placement.

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

Flow-through shares

The new shares issued at a premium price are referred to as ‘flow-through shares’ under the Income Tax Act (Canada), facilitated by Canadian leading flow-through share dealer, Peartree Securities Inc.

The term ‘flow-through share’ refers to shares issued by a company to an investor under a written agreement with the investor, whereby the company agrees to incur flow-through mining expenditure and to renounce tax deductions associated with those expenditures to the investor.

If the company and the investor comply with the rules of the act, the investors are entitled to a tax deduction and as a result, the flow-through shares are issued at a higher price.

Quick facts: Matador Mining Ltd

Follow
ASX:MZZ

Price: 0.355 AUD

Market Cap: $76.01 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of named herein, including the promotion by the Company of in any Content on the Site, the Company receives from said issuer annual cash...

FOR OUR FULL DISCLAIMER CLICK HERE

Matador Mining reports its best ever drill hole outside existing resources...

Matador Mining Ltd (ASX:MZZ, OTCQX:MZZMF)'s Warren Potma tells Proactive they've intersected 19 metres at 4.2 g/t gold during a diamond drilling campaign at the Cape Ray gold project in Newfoundland, Canada. The 19-metre hit, which occurred from 9 metres, also included 1 metre at 30.6 g/t and 1...

3 days, 21 hours ago

3 min read