PERTH (miningweekly.com) – Junior Matador Mining has completed a A$5-million capital raise to complete the acquisition of the Cape Ray gold project, in Canada.
Matador in April acquired the project from TSX-V-listed Benton for a total cash consideration of A$3.5-million and eight-million fully paid ordinary shares, as well as 833 333 options.
Benton was also granted a 1% net smelter royalty on future production.
The project is estimated to contain more than 500 000 oz of gold within its 100 km2 of secured tenure.
Matador on Thursday said that the company had placed some 20-million ordinary shares to professional and sophisticated investors, at an issue price of 25c each, to raise the capital.
“We are delighted to have finalised the equity component of the Cape Ray acquisition. The funds raised will now allow the company to progress towards formal completion of the acquisition,” said Matador executive director Scott Patrizi.
“In addition, the funds raised will ensure that Matador is now fully funded for its maiden exploration programme at Cape Ray, with early works currently under way.”