Matador Mining Ltd (ASX:MZZ, OTCQX:MZZMF) welcomes the private, non-brokered A$3.6 million strategic investment by Canadian-based global gold miner B2Gold Corp to step-up exploration at the Malachite prospect in Newfoundland, Canada.
B2Gold will subscribe for 31,010,290 shares at A$0.1162 each for gross proceeds of A$3,602,682. This will give B2Gold a 9.9% stake in Matador.
The investment is purely for Malachite’s exploration program and will be made in two instalments, with the second tranche requiring shareholder approval at the upcoming annual general meeting on November 28, 2022.
Matador's projects in Newfoundland, Canada.
“We are very pleased to welcome B2Gold’s strategic investment in Matador and look forward to their partnership in advancing our exploration program in Newfoundland,” Matador managing director and chief executive officer Sam Pazuki said.
“B2Gold’s investment demonstrates their confidence in the gold potential of our extensive tenement package, our greenfields exploration strategy with our systematic approach to discovery and the team we have in place to create long-term shareholder value."
Track record
B2Gold and Matador have agreed to form a three-person technical committee comprising of one representative appointed by B2Gold to advise on Matador’s exploration programs in Newfoundland.
“B2Gold’s track record speaks for itself. They have had a long, rich history of creating shareholder value through identifying, acquiring, constructing and operating gold projects globally – all the while doing so to the highest of standards financially, environmentally and socially,” Pazuki explained.
“B2Gold also has a great track record of organic growth through green and brownfields exploration. I firmly believe their involvement as a strategic partner and owner of Matador, combined with their extensive technical expertise, enables us to unlock value for shareholders over the long term.”
Subscription shares
As well, B2Gold will have a five-year option to subscribe for an additional 39,105,524 shares, subject to shareholder approval.
It will also have a right of first offer over future equity capital raisings and a right of first refusal to any future proposed joint venture agreement, including an earn-in agreement, or sale of any of Matador’s projects.
B2Gold has also agreed that it will not sell, transfer, offer or otherwise dispose of any shares acquired under the strategic investment for at least four months from issue.
Vast experience
B2Gold is a Vancouver-based international gold mining company with three operating gold mines and numerous development and exploration projects in various countries, including Mali, the Philippines, Namibia, Colombia, Finland and Uzbekistan.
Since its founding in 2007, B2Gold has created significant shareholder value in the companies it has acquired such as Australian-based Papillon Resources with its Fekola Gold Project in Mali, now B2Gold’s flagship project; Australian-based CGA Mining with its Masbate Gold Mine in the Philippines; and Canadian-based Auryx Gold with its Otjikoto Gold Project in Namibia.
Fekola is now a tier-one gold mine expected to produce about 585,000 ounces of gold in 2022, Masbate is expected to produce about 220,000 ounces in 2022 and Otjikoto is expected to produce about 170,000 ounces in 2022.