Matador raises $4.5m to fund Newfoundland gold exploration

Matador has received a vote of confidence from existing large shareholders and new institutional investors who backed a $4.5m capital raising to fund exploration.

The strong demand for the successful $2m placement and flow through raise of $2.5m is a clear show of support in its strategy to find new discoveries along the multi-million ounce Cape Ray Shear Zone in Newfoundland, Canada.

Proceeds will be used by Matador Mining (ASX:MZZ) to advance greenfield exploration targets to drill-ready status and commence inaugural diamond drilling at the high-priority Malachite target area.

Target generation will also be carried out at other high priority areas such as Bunker Hill, Grandy’s and Hermitage.

“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,” chief executive officer Sam Pazuki said.

“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.”

Matador is also offering eligible shareholders the opportunity to subscribe for up to $30,000 worth of new shares priced at 11.5c each to raise up to $1m.

Cape Ray Shear Zone exploration

The company previously identified 17 high tenor gold grain anomalies at the underexplored 15km by 4km Malachite area, which has seen no exploration drilling to date.

Pazuki previously noted that finding large numbers of pristine gold grains indicated that gold-bearing structures could be present in bedrock close to the sample locations.

Malachite also exhibits the structural and geological complexity that are guides to multi-million ounce gold bodies.

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.