Australia-based Matador Mining has raised A$5.8m ($3.6m) in equity financing to facilitate exploration programmes in Newfoundland, Canada.
The company issued around 116.2 million shares at A$0.050 ($0.031) apiece for the equity raise, which was done with three components.
In the first component, nearly A$3.8m ($2.4m) was secured at A$0.056 ($0.035) per share in a flow-through placement to Canadian investors.
This marked a 24.4% premium to the stock’s last close on 20 October 2023 and a 40.0% premium to the bookbuild price of A$0.040 ($0.025).
The second component involved a flow-through placement of A$1m ($634,177) to Canadian investors, at A$0.042 ($0.026) per share.
This was a 6.7% discount to the stock’s closing price on 20 October 2023 and a 5% premium to the offer price.
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In the third component, A$1m ($634,177) was raised at a price of A$0.040 ($0.025) per share, in a traditional hard dollar placement to sophisticated, professional and institutional investors.
This marked an 11.1% discount to the last stock close and a 14.3% discount to the five-day volume weighted average price as of 20 October 2023.
The company’s directors have subscribed for 2.3 million shares under the traditional placement, with the move awaiting shareholders’ clearance.
Additionally, Matador Mining announced a share purchase plan for current Australia and New Zealand shareholders.
The shares will be priced at A$0.040 ($0.025) each, totalling A$1.5m ($951,266).
Specifically, Matador Mining will use the proceeds from the flow-through components for Newfoundland’s exploration work.
These include diamond drilling new targets within the resource corridor, prospecting, preliminary sampling, mapping, geophysics and geochemistry.
The company will utilise the proceeds from the hard dollar placement and share purchase plan as general working capital.
Matador Mining managing director and CEO Sam Pazuki said: “We are very pleased with the strong support and vote of confidence we have received from our existing shareholders who understand the world of exploration including the opportunities and the risks and are there to support the growth of the business.
“Additionally, we are happy to announce that through this financing, we have attracted several new institutional investors, including one large Toronto-based resource fund and one marquee UK-based resource fund.
“Additionally, B2Gold’s continued investment in and involvement with our business is an endorsement of our district-scale land package, the prospectivity of the tenements, the exploration team in Newfoundland and our world-class approach to exploration.
“We have discovered gold in the basement over a 60km stretch spanning the eastern portion of Long Range to the western portion of Malachite, based on the results from our exploration programme over the past 18 months.
“Additionally, we continue to advance the Hermitage property, which demonstrates significant potential to host multi-million-ounce, multi-metal deposits. We are in the process of ranking and prioritising our targets for the 2024 exploration programme which could include a winter exploration component.”