SOUTHWEST COAST — Matador Mining has been making significant progress on the Southwest Coast with their exploration program, and on Oct. 26 another step forward was announced. In a media release, Matador Mining announced the private, non-brokered $3.6 million strategic investment by B2Gold Corp., which will mean further advances in the exploration program in Newfoundland.
As part of the arrangement, B2Gold – a Vancouver-based international gold mining company with three operating gold mines and a number of development and exploration projects around the globe – has agreed to subscribe for and purchase 31,010,290 fully paid ordinary shares at a price of around $0.1162 per share, totaling $3,602,682.
In response to email inquiries, Sam Pazuki, Managing Director and CEO of Matador Mining, said this is an important move for Matador, the province of Newfoundland and Labrador, and stakeholders.
“B2Gold is a major global gold producer that produces about a million ounces of gold a year from three operations. They are a world-class mining company with an incredible team of geologists, mine builders and operators and they have created significant value for shareholders and socio-economic benefits for their host countries and regions. Their investment in Matador is an endorsement of what we are doing, who we have doing it and the prospectivity of the ground we are exploring on," stated Pazuki.
“I should also point out that it’s the first time that B2Gold has ever invested in Canada and the first time they have invested in the deal structure that we have with them. It’s also the first time in over two decades that a major mining company has made an investment in Newfoundland.”
Following Hurricane Fiona, rumours were circulating that Matador Mining had closed their offices in Port aux Basques, leading to speculation as to whether or not this would be permanent. Pazuki said there is no truth to these rumours.
“Our Port aux Basques offices are firmly in place. We have not gone anywhere and have no intentions to go. In fact, we were inquiring with the property owner of our current location on expanding our office space. We also have our core storage areas in place,” explained Pazuki. “We are drilling and carrying out exploration activities in new areas. However, the team is based out of Port aux Basques. Some of this fieldwork is further up on the belt and some members of the team are staying in the Midway Hotel as it’s closer to where we are doing some work.”
The Isle aux Morts site, in the area where they currently have a defined resource, is not being worked on even though Pazuki said they believe there is further potential to expand resources there. Instead Matador is focusing further along the belt near Malachite Lake.
“We have one of the largest tenement packages in Newfoundland and up until six months ago – when I joined Matador – all the work done was in and around the known resource. Our strategy has shifted to focus on grassroots exploration in what we believe is highly prolific areas that could host million ounces of gold. We are diamond drilling, which is helicopter assisted, in the Malachite Lake area. However, the weather has started to be uncooperative and we will be winding down the drilling for the season over the coming weeks. We have been conducting extensive prospecting up and down the belt and this work will start to wind down for the season as well.”
Matador Mining has had a successful year and is already in the early stages of planning for its 2023 program, which they expect to be one of the most comprehensive exploration programs in the company's history.
“We have had great results to date which demonstrate gold in soils. The work over the last couple of months involving the drill rig and prospecting is to see if there is gold in bedrock, which is the next hurdle in the exploration process to tick-off. We are waiting for lab results on this work but expect to receive these results in the coming weeks,” said Pazuki. “We are in the early stages of planning for 2023. However, we are excited to expand our exploration program and carry out a variety of different types of activity, including diamond drilling, RC drilling, prospecting and mapping, geochemistry and geophysics works.”
Jaymie White, Local Journalism Initiative Reporter, Wreckhouse Weekly News