- Gold exploration company Matador Mining (MZZ) has raised over $5 million for its Cape Ray Gold Project
- The company recently completed a private placement to institutional, professional and sophisticated investors at 20¢ per share
- Funds will be used to complete the scoping study, assess gold production and help restart exploration at Cape Ray
- On market close, Matador is down 8.33 per cent, selling shares for 22¢ apiece
Gold exploration company Matador Mining (MZZ) has raised $5.2 million for its Cape Ray Gold Project.
The company completed a private placement to institutional, professional and sophisticated investors at a price of 20¢ per share.
Matador directors have subscribed for 1.35 million shares, which will need shareholder approval of shareholders at the next general meeting.
Funds will be used to complete the scoping study to assess gold production and will help the recommencement of exploration activities at Cape Ray.
The study is assessing the potential for an open-pit mine at the project, which is expected to be completed by the end of this quarter.
Cape Ray is located in Newfoundland, a large island east of the Canadian mainland.
Earlier this month, Matador increased the resource at Cape Ray to 16.6 million tonnes, grading at 2.2 grams per tonne of gold for 1.2 million ounces, with 55 per cent in the indicated category.
The company believes Cape Ray exploration is extensive, as they have only explored a small portion of its 80-kilometre strike.
On market close, Matador is down 8.33 per cent, selling shares for 22¢ apiece.