Matador Mining (ASX:MZZ) raises $4.5m for exploration

• Matador Mining (MZZ) raises $4.5 million through a two-tranche placement to fund exploration
• The company will issue 36.7 million new shares to investors at an average price of 12 cents each
• The proceeds will mostly be used to generate new targets in the Malachite target area within its Cape Ray gold project in Canada
• Matador also launched a share purchase plan, offering eligible shareholders the chance to subscribe for up to $30,000 worth of shares at an issue price of 11.5 cents
• Shares are down 3.7 per cent to 13 cents each at 2:00 pm AEST

Matador Mining (MZZ) has raised $4.5 million through a two-tranche placement to fund exploration.

The company will issue a total of 36.7 million new shares at an average price of 12.3 cents each to institutional, professional and sophisticated investors.

Directors subscribed for 1.8 million new shares, subject to shareholder approval.

The proceeds will mostly be used to generate new targets in the Malachite target area within its Cape Ray gold project in Newfoundland, Canada.

In addition, the money will be utilised to commence an inaugural diamond drilling program at Malachite drill targets and for working capital.

To further fund these activities, Matador will also launch a share purchase plan (SPP), offering eligible shareholders the chance to subscribe for up to $30,000 worth of shares at an issue price of 11.5 cents.

CEO Sam Pazuki said he was pleased with the support seen in the placement.

“This demand highlights the support for and confidence in Matador’s revised strategy that focuses on new major discoveries along one of the largest mineral tenement packages on the multi-million-ounce Cape Ray Shear in Newfoundland, Canada,” he said.

Shares were down 3.7 per cent to 13 cents each at 2:00 pm AEST.