BATTLING Matador Mining says it has received firm commitments of A$5.8 million (US$3.7 million) via an equity raising utilising flow-through share provisions available under Canadian tax law and "traditional hard dollar" placement to institutions and sophisticated investors.
An average price of 5c per share was put on the new equity, though the traditional hard dollar placement priced new stock at 4c per share.
A share purchase plan worth a further $1.5 million is to be undertaken at a price of 4c per share.
Matador will use the funds on its district-scale gold ground in Newfoundland.
Work over recent years has defined resources of 610,000 ounces at 1.96 grams per tonne gold at one of its two key ground positions.
The explorer had $6.2 million cash at the end of June and an enterprise value this week of around $10 million.
The stock was trading at an all-time high of nearly 50c in May 2021.
Shares in Matador were down 6.7% to 4.2c in morning trade today, capitalising the company at $13.2 million.
