- Junior gold miner Matsa Resources (MAT) is gearing up to launch a capital raise later this week
- The details of the capital raise will be revealed on Thursday, September 3, when Matsa comes out of a trading halt
- At the end of June, Matsa had around $2.8 million in total available funding after recording a $327,000 shortfall once all relevant outgoings were tabled
- The company recently revealed its plans to kick off a fresh drilling campaign at the Red October mine in Western Australia
- Shareholders will find out whether the new funds will go towards exploration work or if there’s something bigger brewing for Matsa on Thursday
- Shares in Matsa last traded for 16 cents each yesterday afternoon
Junior gold miner Matsa Resources (MAT) is gearing up to launch a capital raise later this week.
The company has frozen its shares for two days as it irons out the details of the raise, though none of these details has been revealed to shareholders just yet.
As such, it’s not clear how much Matsa plans to raise and where the new funds will be headed.
Taking a look at the company’s latest financial figures, Matsa had around $2.8 million in total available funding after recording a $327,000 shortfall once all relevant outgoings were tabled.
Interestingly, Matsa pocketed just under $5.2 million in customer receipts over the June quarter, which is more than the other three quarters of the 2020 financial year combined.
Still, given Matsa is still burning through more money than it’s pulling in, the upcoming capital raise may come as no surprise to investors.
In June, Matsa struck a deal with fellow miner IGO (IGO) over the Symons Hill nickel project. Under the deal, IGO will spend up to $7 million on exploration work to earn a 70 per cent interest in the project.
More recently, Matsa highlighted its plans to kick off its own fresh drilling campaigns at its Red October gold mine in the wider Lake Carey Gold Project in Western Australia.
Shareholders will have to wait until Thursday, September 3 to find out if the money from the upcoming capital raise will be used to support ongoing exploration work or if there’s something bigger brewing for Matsa.
Shares in Matsa last traded for 16 cents each yesterday afternoon. The company has a $36.33 million market cap.