Matador Mining Ltd (ASX:MZZ, OTCQX:MZZMF) has accepted $2.9 million from its heavily oversubscribed share purchase plan (SPP), receiving applications totalling about $3.9 million, exceeding the company’s initial SPP target raise of $1 million.
Together with the placement, the company now has about $7.9 million in its kitty to advance its exploration programs.
These funds will be primarily used for drill target generation in the high-priority Malachite target area and additional priority targets including Bunker Hill, Grandy’s and Hermitage and for general corporate working capital purposes.
Looking ahead, Matador is planning to kick off drilling at Malachite at the end of the Canadian summer in September 2022.
“Drill-test new greenfield targets”
Matador managing director Sam Pazuki said: “We are greatly appreciative of the continued support we have received from our valued retail investors.
“It’s very clear to me that the investment communities in Australasia and North America strongly support our strategy and believe in the opportunities that exists for us in Newfoundland.
“The board’s decision to accept applications totalling $2.9 million is a prudent one considering the challenging and volatile state of capital markets recently, particularly for the gold mining industry.
“Despite these challenges, we have successfully placed shares and raised funds with a solid group of institutional and retail investors, and we are committed to drill-test new greenfield targets as we strive to make major new mineral discoveries.”
Malachite target area
The Malachite target area measures 60 square kilometres, an area larger than Marathon Gold’s multi-million-ounce Valentine Lake Project.
The prospect has defined significant gold anomalism through soil geochemistry testing and, since June 2022, the company has followed up with exploration activities to identify diamond drill-ready targets.
Notably, the proceeds from the fundraising enable the commencement of the inaugural diamond core drill program at Malachite.