Matsa to pay maiden 0.2¢ div­i­dend on Red Dog

Kalgoorlie Miner - - NEWS - If you or some­one you know is think­ing of sui­cide, phone Life­line on 13 11 14. Josh Chiat

North­ern gold­fields ju­nior Matsa Re­sources will pay out its maiden div­i­dend after bank­ing $5.5 mil­lion on its short-lived Red Dog gold mine south of Laver­ton.

It is also clos­ing in on a de­ci­sion on whether to re­open the Red Oc­to­ber gold mine, Matsa ex­ec­u­tive chair­man Paul Poli says, with the com­pany spend­ing $1.3 mil­lion on un­der­ground min­ing equip­ment for the mine it bought from Sara­cen Min­eral Hold­ings in a $2 mil­lion deal in 2017.

Matsa pro­duced 12,704 ounces of gold through a toll milling agree­ment at An­gloGold Ashanti’s Sun­rise Dam plant at all-in sus­tain­ing costs of $1288/oz over a three­month pe­riod.

It has led Matsa to is­sue a 0.2¢ a share div­i­dend, the com­pany’s first, val­i­dat­ing the ju­nior miner’s de­ci­sion to turn to the Laver­ton gold dis­trict after an un­fruit­ful run as a nickel ex­plorer on the Fraser Range east of Norse­man be­tween 2012 and 2016.

Mr Poli said the com­pany aimed to bring a string of small open pits on­line around the Red Oc­to­ber mine in the fu­ture to gen­er­ate in­come, rather than try­ing to raise eq­uity from share­hold­ers.

“I think ul­ti­mately our goal is to have a long-term gold mine at Red Oc­to­ber,” he said.

“I think that’s a lot nearer to ful­fil­ment than what is an­tic­i­pated.

“We are us­ing these small pit sce­nar­ios to keep cashed up and make some money and not go into di­lu­tion for share­hold­ers.”

Matsa shares closed up 0.5¢, or 2.9 per cent, at 17.5¢ each yes­ter­day.

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