New shares will be issued to undisclosed investors at a price of 56c each, a 28% premium to the last closing price of the stock prior to the trading halt for the capital raising.

Under flow through shares fundraisings, investors are entitled to tax deductions incurred by the company's exploration for income tax purposes, "and as a result, the flow-through shares are issued at a higher price".

Matador's charged-up exploration campaign includes increasing diamond drilling from 20,000m to up to 45,000m, boosting the power auger drilling capacity from three to five rigs and doubling the Heli-mag program to 80km of strike.

Matador scoped the project last year as an average 88,000 ounce per annum, seven-year operation costing circa $145 million to build and having all-in sustaining costs of US$776/oz.

The project is promoted as having "major exploration upside".

Matador started the current quarter with about A$8 million cash.

It undertook a capital raising of about $9 million nearly 12 months ago that priced new shares at 40.5c each.

Shares in Matador were up 10% to 48.5c in morning trade, capitalising the company at $88 million.