Matador came out of a trading halt this morning after raising $16 million — at a premium — and is gearing up to double down on exploration at its Cape Ray gold project in Canada.

The company issued 28.6 million shares at A$0.56 per share – a 28% premium to the closing price of A$0.44 per share.

Matador (ASX:MZZ) will use the money to expand and accelerate exploration at Cape Ray from 20,000m to 45,000m of drilling.

Exploration activities at the project will also include:

  • Increased power auger drilling with 5 rigs (previously 3);
  • Expanded Heli-mag program to 80kms of strike (previously 40kms);
  • Inaugural winter exploration program; and
  • Pre-feasibility study and permitting activities.

Strong demand highlights market support

“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,” Matador executive chairman Ian Murray said.

“These additional funds now mean that we can materially accelerate our work program, with the aim of advancing the timing of new discoveries.

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

Building landholding

Newfoundland has become a hot spot for gold exploration in North America, largely due to the recent high-grade ‘Queensway’ gold discovery by TSX-listed New Found Gold.

And the company has its foot in the door – earlier this month Matador staked another 320km2 of prospective exploration tenure in the gold district off the back of a major airborne magnetic survey.

The expanded landholding has added five new prospective zones on top of the high-quality targets already on offer at the project – which hosts an existing mineral resource of 840,000oz at an average grade of 2.6g/t.




This article was developed in collaboration with Matador Mining a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.