Matador Mining Ltd (ASX:MZZ, OTCQX:MZZMF) is set to advance its greenfield exploration targets as well as its inaugural diamond core drill program at Malachite and other additional high-priority targets including Bunker Hill, Grandy’s and Hermitage after a successful share placement raising gross proceeds of $4.5 million.
The 36.7 million shares were placed to institutional, professional and sophisticated investors at an average price of $0.123 per share.
The placement was completed through two primary tranches: hard dollar, which raised $2.0 million in gross proceeds at a share price of $0.115 per share, and a flow-through placement yielding $2.5 million in gross proceeds at a share price of A$0.13 per share.
Share purchase plan
Matador also plans to offer eligible shareholders the opportunity to participate in a share purchase plan on the same terms as the placement at $0.115 cents per share, up to the value of $1.0 million.
A further 1.8 million shares will be issued to directors of the company on the same terms as the placement, subject to the approval of Matador shareholders at the company’s next general meeting to be announced later.
“Confidence in Matador”
“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,” Matador CEO Sam Pazuki said.
“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 multi-million-ounce Cape Ray Shear in Newfoundland, Canada.
“We have recently advanced field work 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 program 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 ounces grading 2 grams per tonne 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.
“We look forward to retail shareholders taking up the opportunity to invest alongside these institutional investors via the share purchase plan and supporting Matador as we continue our very exciting exploration activities.”