PERTH (miningweekly.com) – Junior Matsa Resources has raised A$6-million to fund exploration at its Red October and Lake Carey operations, in Western Australia.
Matsa issued 40-million fully paid shares, at a price of 15c each, under its existing placement capacity to a range of new institutional and sophisticated investors.
The subscribers will also receive one free unlisted option for every four shares subscribed for, with an issue price of 25c each, and expiring 18 months after issue.
Matsa on Monday said that the funds raised would be used on an extensive and immediate new underground exploration drill programme at the Red October underground mine, new drilling at Fortitude North, Red October and the Devon gold mine and surrounds, and to increase regional exploration.
Funding will also go towards work at Stage 2 of the Fortitude gold project, where milling studies have illustrated a two-year production scenario producing a potential cash surplus of A$21.6-million for a A$6.6-million capital investment.