Now a fully-fledged gold producer after selling the first ore from its Fortitude mine in Western Australia, Matsa Resources has decided to give back.

Matsa (ASX:MAT) plans to reward shareholders by offering a 1-for-10 bonus share issue.

“This means that all shareholders at the record date will increase their shareholding in Matsa by 10 per cent at no cost to them,” executive chairman Paul Poli said.

Matsa's share price over the past six months. Source:
Matsa’s share price over the past six months. Source:

“Matsa has been looking at ways to reward shareholders in a meaningful way and this bonus issue is a way of doing that at no cost to shareholders and at minimal expense to the company.”

The bonus share issue coincides with the receipt of first revenue from mining at the Fortitude trial mine that forms part of the company’s Lake Carey project. Mining began in July.

Matsa has an ore purchase agreement with AngloGold Ashanti Australia under which ore from Fortitude is delivered to AngloGold’s Sunrise Dam operation and each month Matsa receives an income.

The company received a higher than expected price of $1641 per ounce for the ore, which was delivered in October.

While the first payment was relatively small, expected income in the following months would increase as mining activities and ore deliveries ramp up to full production, Matsa noted.

Trial mining was expected to produce 12,100 ounces and deliver a cash surplus of about $5.2 million over eight months.

Unsurprisingly, the market responded well to the news, with Matsa’s share price closing up 12 per cent at 28c.

The share price has gained 75 per cent since early September, when it was sitting at a low of 16c.