Matador raises funding with gold project scoping results imminent

EXPLORER Matador Mining has raised A$5.2 million ahead of a scoping study being completed next month for its Cape Ray gold project in Newfoundland.
Matador raises funding with gold project scoping results imminent Matador raises funding with gold project scoping results imminent Matador raises funding with gold project scoping results imminent Matador raises funding with gold project scoping results imminent Matador raises funding with gold project scoping results imminent

The Cape Ray project in Newfoundland

The $5 million will come from issuing new shares to undisclosed investors priced at 20c each, though Matador did say unspecified directors are tipping in $270,000 of the funds being raised.

Matador's directors including resource sector entrepreneur Grant Davey, with directors and management said to previously hold 22% of the company.

Earlier this month Matador increased the resource at Cape Rey to 16.6 million tonnes grading 2.2 grams per tonne gold for 1.2 million ounces, with 55% in the indicated category.

The project is claimed to feature "shallow high-grade mineralisation from surface", with the scoping work started this quarter focused on outlining a shallow open pit mining opportunity.

Matador has previously indicated the likelihood of construction starting by 2022.

Shares in Matador were down 8.3% to 22c in afternoon trade, capitalising the company at $21.8 million.

The stock reached levels above 30c last July.