Matsa Resources Limited (ASX:MAT) Announces Takeover Bid
Takeover Bid Announcement
Matsa Resources Limited (ASX:MAT) announced an unsolicited takeover bid of $0.045 per share, valuing the company at $33 million. The current market cap stands at $37 million with a closing price of 5.0 cents on 17 February 2025. The bid excludes the Devon Pit Gold Mine and the Fortitude North exploration site.
Gold Resource and Reserve
Matsa reported a gold resource of 949,000 ounces at 2.5 g/t and a gold reserve of 104,000 ounces at 2.4 g/t. The Lake Carey Gold Project remains stable with no changes since the last ASX announcement on 30 April 2024.
Operational Achievements
The Devon Pit Gold Mine is fully permitted and ready for mining, with steady state operations expected to commence in Q2 2025. The feasibility study shows a pre-tax free cash flow of up to $73.4 million at current gold prices. Additionally, Fortitude North drilling is set to begin in 2025, promising potential resource expansions.
Strategic Roadmap
Matsa’s 12-month strategic roadmap includes the commencement of mining at Devon, exploration drilling at Fortitude North, and potential extensions to the Devon resource. Discussions with AngloGold Ashanti regarding a corporate transaction at Lake Carey are progressing, with an expected outcome in the near term.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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