Block of gold up for grabs in Matador News26 Jun 2021

Gold miner Matador has enlisted Shaw and Partners and Canaccord Genuity to sell 28.58 million shares at 42¢ per share, worth $12 million.


The block trade will follow the completion of a Canadian Flow Through placement of the securities at 56¢, subject to foreign exchange movements.


A flow through placement allows resources companies in Canada to issue new shares to investors at a higher price than it would receive for normal shares, allowing it to raise additional funds to support exploration activities thanks to tax incentives.


The 42¢ a share deal comes at a 4.5 per cent discount to Matador’s last close price of 44¢ and a 9.9 per cent discount to its five day volume-weighted average price.


The offer follows a similar transaction the company completed in July last year.


Matador’s Cap Ray Gold Project is in the south-western area of Newfoundland, Canada, extending over 120 kilometres along the Cape Ray shear.


Matador will use the proceeds of the offer to accelerate its diamond drilling program from 20,000 metres to 45,000m, as well as up its auger drilling program from three rigs to five.

The funds will also support an inaugural winter exploration program.


A scoping study published last year found that the mine had “potentially strong” financial metrics and a possible seven-year lifespan for the initial mine.


The company’s trading halt is due to be lifted on Wednesday next week, once confirmation letters regarding the block trade have been distributed.


Article source: AFR, 25 June 2021

Related Articles
News14 Oct 2021 Shaw and Partners appoints LAB Group to automate digital onboarding for its clients and financial planners
Shaw and Partners has successfully implemented LAB Group’s white labelled client onboarding solution, LABform, empowering financial advisers and desk assistants to seamlessly origi... Read More
News11 Oct 2021 Packform valued at $150m in pre-IPO round handled by Shaw and Partners
It’s full steam ahead for online packaging marketplace Packform, which has secured its $25 million pre-IPO raising at a $150 million valuation.   Founded by serial entrepreneur P... Read More
News08 Oct 2021 Former GE team raises funds for fintech MitchCap
A bunch of former GE Capital executives is poised to complete a $7.5 million pre-IPO funding round for their specialist distribution financier, MitchCap.   Having left GE when it... Read More
News06 Oct 2021 Shaw and Partners appointed as Joint-Lead Manager to the Regal Investment Fund capital raising
Shaw and Partners is delighted to be appointed as Joint-Lead Manager to the capital raising announced by Regal Investment Fund (ASX.RF1).   The equity raising comprises a Placeme... Read More
A - Z  % Change  
{{data.Symbol}} {{data.CompanyName}} {{data.Close}} {{data.AsAt | date :'shortTime'}} {{data.Movement | number : 2}} {{data.MovementPercent | number: 2}}%