AuMEGA Metals Ltd, previously known as Matador Mining Ltd, has finalised the first tranche of its financing round, raising C$8.77 million (~A9.56 million) by issuing 131,152,889 ordinary shares to institutional, professional and accredited investors.
The money raised will be used to fund a 20,000-metre drill program at AuMEGA’s Bunker Hill Project along the Cape Ray Shear Zone in Newfoundland and Labrador, Canada, aiming to expand its mineral resource. Early-stage exploration will also continue at Hermitage and Malachite.
At the end of October, AuMEGA delivered positive findings from an initial till geochemical survey conducted at its Intersection Project, next to Bunker Hill. Conducted during the Canadian summer of 2024, this reconnaissance till survey was part of efforts to identify mineralisation potential within the project area.
The till survey followed a systematic grid, with lines spaced 800 metres apart and sample stations at 100-metre intervals. Initial analysis identified several priority follow-up targets, suggesting the presence of large, subsurface mineralised systems.
Results indicated anomalous concentrations of gold, silver, copper and other indicative elements across multiple grid points, reinforcing the mineralisation potential of the area.
The company viewed the findings as supportive of further exploration and sampling efforts at the Intersection Project to evaluate its potential resource.
About the tranches
This first tranche of two, included 9,259,259 new shares priced at C$0.050 (A$0.054) per share and 121,893,630 flow-through shares, priced at C$0.06825 (A$0.07408), eligible under Canada’s Income Tax Act.
In the Tranche One Placement, AuMEGA utilised its capacity issuing 78,808,211 shares and 52,344,678 shares under various rules, with 76,200,000 shares listed on the TSX Venture Exchange (TSXV) and 54,952,889 on the ASX.
The second tranche (Tranche Two Placement) is scheduled for shareholder approval on December 4, 2024, and is expected to raise C$7.34 million.
This tranche will see the company issue 129,535,778 ordinary shares, with 108,199,667 to be listed on the TSXV and 21,336,111 on the ASX.
Key executives will participate, making it a related-party transaction under Canada’s Multilateral Instrument 61-101. However, formal valuation requirements are waived, as the transaction does not exceed 25% of AuMEGA’s market capitalisation.
Approximately C$555,000 in finders’ fees was paid for the Tranche One Placement, which, along with Tranche Two, remains subject to final TSXV approval.
All Canadian-issued securities are subject to a four-month hold period, expiring on March 1, 2025.