Matsa Raises $260K, Finalizes Permits Ahead of Devon Pit Gold Mine Start

Devon Pit Gold Mine Nears Production

Matsa Resources Limited (ASX: MAT) has made significant strides toward operationalising its Devon Pit Gold Mine, part of the broader Lake Carey Gold Project in Western Australia. The company announced that all necessary regulatory permits and approvals are now in place, effectively clearing the path for mining activities to commence in the near term.

With mining and processing contracts in the final stages of negotiation, Matsa is positioning itself to transition from exploration to production. The company is concurrently advancing its final feasibility study, which is expected to be delivered during the March 2025 quarter. This study will provide a comprehensive assessment of the project’s economic viability and operational parameters.

Exploration and Technical Progress

In parallel with development efforts at Devon, Matsa completed a deep diamond drill hole at Fortitude North, reaching a depth of 767 meters in January 2025. This drilling is part of an innovative R&D program funded under the Western Australian government’s Exploration Incentive Scheme (EIS), aimed at testing seismic models and exploring extensions of known gold mineralisation. Assay results and geological logging are expected in the coming quarter, which could refine the company’s understanding of the deposit and inform future exploration strategies.

Financial Position and Capital Raising

Financially, Matsa reported holding approximately A$4.18 million in cash and receivables at the time of the announcement. During the quarter, the company successfully completed a fully underwritten 1-for-5 non-renounceable Loyalty Options Offer, raising $260,035 before costs. The proceeds are earmarked for advancing the Devon project and supporting working capital requirements.

Despite a negative operating cash flow of $439,000 for the quarter, Matsa’s capital management appears prudent, balancing exploration expenditure with the imminent transition to production. The company also repaid $487,000 of R&D advance funding, underscoring disciplined financial stewardship.

Strategic Discussions and Future Outlook

Matsa continues discussions with AngloGold Ashanti Australia Limited regarding a potential transaction involving the Lake Carey Gold Project. While these talks remain ongoing, they highlight the strategic interest in Matsa’s assets and could potentially unlock additional value for shareholders.

Looking ahead, the company plans to finalise mining and processing agreements, secure financing arrangements, and commence preparatory activities such as dewatering and road maintenance ahead of mining operations. Further drilling at Fortitude North is also planned to test seismic targets and mineralisation extensions, which could enhance the project’s resource base.

With a maiden ore reserve declared at Devon Pit, 309,000 tonnes at 4.59 g/t gold for 46,000 ounces, the project is shaping up as a material contributor to Matsa’s growth trajectory. The company’s dual focus on gold and lithium projects, including promising exploration in Thailand, adds a layer of diversification to its portfolio.