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Matador raises cash for Cape Ray exploration

30th June 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gold explorer Matador Mining will raise A$16-million in a share placement to fund exploration work at its Cape Ray gold project, in Canada.

The company will place some 28.5-million shares, at a price of 56c each, under its existing placement capacity.

The offer price represented a 28% premium to Matador’s last closing price on June 24, and an 18% premium to the company’s ten-day volume weighted average share price.

“To have such strong demand highlights the market support for our exploration strategy to systematically test the potential of our Cape Ray gold project, in Newfoundland. These additional funds mean that we can materially accelerate our work programme, with the aim of advancing the timing of new discoveries,” said Matador executive chairperson Ian Murray.

The increased exploration programme would include expanding the diamond drilling programme from 20 000 m to 45 000 m, and increasing the power auger drilling capacity from three rigs to five rigs, while also increasing the Heli-mag programme from 40 km of strike to 80 km of strike.

Edited by Creamer Media Reporter

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