Join our daily newsletter At The Bell to receive exclusive market insights
- Matador Mining (MZZ) has come out of a trading halt after successfully completing an $8.7 million placement
- On July 2, Matador requested back-to-back trading halts pending a capital raising announcement
- The company today announced it had completed the placement, issuing 21.43 million shares at 40.5 cents each
- Matador will use the money to fund exploration activities at its Cape Ray Gold Project in Newfoundland, Canada, where a 12,000 metre drill program will begin shortly
- Matador is currently up 12.7 per cent on the market and shares are trading for 35.5 cents each
Matador Mining (MZZ) has come out of a trading halt after successfully completing an $8.7 million placement.
On July 2, the company requested back-to-back trading halts pending a capital raising announcement.
The company today announced it has raised $8.7 million, issuing 21.43 million shares at 40.5 cents each
Interestingly, this price is a 28.5 per cent premium to Matador’s closing price of 31.5 cents from July 1.
It also represents a 44.5 per cent premium to the 15-day volume-weighted asset price of company shares on July 1.
Shares were priced at a premium because they were issued as Canadian charity flow-through shares, which provides tax incentives to investors.
Flow-through shares are unique to the resources sector in Canada.
Matador will use the money to fund exploration activities at its Cape Ray Gold Project in Newfoundland, Canada, where a 12,000 metre drill program will begin shortly.
The money ensures Matador is well funded for the 2020 and 2021 exploration seasons.
Matador is currently up 12.7 per cent on the market and shares are trading for 35.5 cents each at 2:15 pm AEST.
