Funding Secured, But Can Matsa Deliver on Lake Carey’s Potential?
Matsa Resources has locked in a $15 million funding package to fast-track development and exploration at its Lake Carey Gold Project, including advancing the Devon Pit and Fortitude Gold Mines. This capital injection aims to unlock latent value and support feasibility studies and drilling programs.
- $15 million funding package – $10M share placement, $5M debt facility
- Focus on accelerating Lake Carey Gold Project development and exploration
- Devon Pit Gold Mine forecast to generate ~$60M at A$4,250/oz gold price
- Retention of full resource base despite AngloGold Ashanti tenement elections
- Debt facility secured by Devon Pit mining leases with flexible repayment terms
Funding Boost to Accelerate Growth
Matsa Resources Limited has announced a significant $15 million funding package designed to accelerate its growth ambitions at the Lake Carey Gold Project in Western Australia. The package comprises a $10 million share placement and a $5 million debt facility, providing the company with both equity capital and flexible debt to support ongoing operations and development.
The share placement was well supported by existing major shareholders, including Deutsche Balaton and Flagship Fund, as well as new strategic institutional gold investors. This broad backing underscores confidence in Matsa’s strategy to unlock value from its extensive gold assets.
Advancing Key Gold Mines and Exploration
The funding will enable Matsa to fast-track development options for the greater Lake Carey Gold Project, including open pit optimisations, mine designs, and feasibility studies. A key focus is the Devon Pit Gold Mine, which has recently commenced mining and is forecast to generate approximately A$60 million in revenue at a gold price of A$4,250 per ounce, producing around 42,000 ounces of gold.
In addition, Matsa plans to advance studies and mine plans for the Fortitude Gold Mine and surrounding projects retained under an option agreement with AngloGold Ashanti. Despite AngloGold’s tenement elections, Matsa retains its entire existing resource base, preserving an estimated option value exceeding A$113 million.
Exploration and Processing Facility Plans
The company will also accelerate drilling programs at Fortitude North and BE1, where previous drilling intersected visible gold, highlighting promising exploration upside. Furthermore, Matsa is investigating the feasibility of establishing a standalone processing facility to treat ore from Lake Carey and potentially other regional deposits, aiming to enhance operational flexibility and value capture.
The $5 million debt facility, provided by Temorex Pty Ltd, is secured by a mortgage over the Devon Pit mining leases and includes flexible repayment options either in cash or gold bullion, linked to prevailing gold prices. This structure offers both financial capacity and adaptability as the project advances.
Outlook and Strategic Positioning
With a global mineral resource estimate of approximately 949,000 ounces of gold and reserves of 104,000 ounces, Matsa is positioning itself to expand production and enhance shareholder value. The company plans to grow its operating team to support these initiatives and move towards defining further resources and building production infrastructure.
Overall, this funding package marks a pivotal step for Matsa Resources, providing the capital and strategic support necessary to unlock the full potential of its Lake Carey assets amid a supportive gold market environment.
Bottom Line?
Matsa’s fresh capital injection sets the stage for accelerated growth, but execution on feasibility and exploration will be key to unlocking value.
Questions in the middle?
- How will gold price fluctuations impact the debt facility repayment and overall project economics?
- What timeline does Matsa envisage for completing feasibility studies and commencing production expansion?
- How might AngloGold Ashanti’s tenement elections influence future joint ventures or project development strategies?
