- Matsa Resources (MAT) receives firm commitments to undertake a $3.38 million placement
- More than 42.1 million fully paid ordinary shares will now be issued to institutional and sophisticated investors at eight cents apiece
- Additionally, participants will receive one free attaching option for every two shares subscribed for, exercisable at 17 cents with expiry on April 30, 2023
- Matsa will use the funds to undertake exploration at the Red October gold mine and drill at the Fortitude North and Devon Hub prospects
- Shares in Matsa are down 7.87 per cent and trading at 8.2 cents at 2:35 pm AEST
Matsa Resources (MAT) has received firm commitments to undertake a $3.38 million placement.
The company entered a trading halt on July 14 but did not disclose how much it intended to raise or what it would use the funds for.
A total of 42,191,875 fully paid ordinary shares will now be issued to institutional and sophisticated investors at eight cents.
This price represents a 10.1 per cent discount to the closing price on July 13 of 8.9 cents and a 14.4 per cent discount to the 15-day volume-weighted average price.
Additionally, participants will receive one free listed attaching option for every two shares subscribed for, exercisable at 17 cents with expiry on April 30, 2023.
Shares are expected to settle on July 21 and be allocated on July 22.
Matsa will use the funds to undertake exploration at the Red October gold mine and drill at the Fortitude North and Devon Hub prospects.
Executive Chairman Paul Poli said the funds will allow the company to significant expand the resource at its tenements.
“The successful capital raising helps underpin the company’s stated strategy of exploration to build a significant resource to allow Matsa to build its own processing facility,” Mr Poli stated.
“Matsa will now aggressively pursue specific drilling programs aimed at delivering strong results as well as conduct other exploration programs.”
Shares in Matsa were down 7.87 per cent and trading at 8.2 cents at 2:35 pm AEST.