Matsa will use the funds for licensing applications and maiden drilling at its Thailand tenure. Pic via Getty Images.
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Matsa Resources has raised $2m to explore its large lithium portfolio in southern Thailand.
Matsa Resources (ASX:MAT) received oversubscribed, binding commitments from major shareholders and other investors in a share placement of 66,666,667 fully paid shares at 3c per share.
The funds will be used for costs associated with negotiating the potential sale of its 936,000oz Lake Carey gold project to AngloGold and developing Matsa’s lithium assets in Thailand.
“We are very pleased with the success of this capital raising, which was oversubscribed, and was well supported by major shareholders, including Deutsche Balaton, and a number of new investors,” Matsa exec chair Paul Poli says.
“The Placement will allow Matsa to build on its Thailand lithium ambitions by progressing selected existing SPLA’s to granted licences and paving the way for a maiden drilling program.
“We are excited to continue the momentum in these projects where future results could really enhance Matsa’s prospects.
“The Placement also provides Matsa with suitable funding while it continues its negotiations with AngloGold.”
In February this year, Matsa announced the discovery of two new hard rock lithium provinces in western Thailand, Kanchanaburi and Ratchaburi.
These discoveries complemented its previous lepidolite discovery in the Phang Nga province (Rose Panther) 600km further south.
Matsa says its 1,684km2 in Thai landholdings make the explorer arguably one of the larger holders of tenure prospective for lithium in SE Asia.
Part of the $2m raise will go to progressing applications for Special Prospecting Leases (SPL) so it can suit up for a maiden drilling campaign across the Rose, Spotted and Pink Panther prospects at Kanchanaburi and Ratchaburi.
Ground surveys have already been completed and Matsa will follow these up with further data gathering.
Once the SPL is in place, drilling to define the lateral extent of mapped lithium pegmatites at Pink Panther and Rose Panther will begin.
In July Matsa penned a confidentiality agreement for the sale of its Lake Carey gold project to gold major AngloGold’s subsidiary AGAA.
Lake Carey is made up of three gold mines, including the Red October gold mine and the Fortitude and Devon pits and has a total mineral resource of 936,000oz @ 2.5g/t.
The company had also flagged a potential >1Moz gold system from drilling at Fortitude North.
Part of the funds raised will go towards holding and transaction costs during negotiations for its potential sale to AngloGold.
This article was developed in collaboration with Matsa Resources, 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.
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