Matsa Resources Limited (ASX: MAT) has announced significant developments regarding its Devon Gold Project and its corporate financing, including the suspension of operations and the appointment of administrators to two of its subsidiaries. Matsa Resources Limited is an ASX-listed gold exploration and development company. It holds various gold projects in Western Australia, including the Devon Gold Project.
The company received notice from its mining contractor, Blue Cap Mining Pty Ltd (BCM), to suspend operations at Devon due to alleged unpaid invoices and accelerated payment demands, including a $6 million working capital facility plus interest. Matsa subsequently made a payment of $22.8 million to BCM to clear all outstanding invoices. Despite this, BCM claimed further amounts were owed, including a potential future profit share from the Devon Mine, and proceeded to appoint KPMG as Receivers and Managers to Devon Gold Pty Ltd and certain assets of Matsa Gold Pty Ltd, specifically those associated with the Devon Mine. Matsa disputes BCM’s profit share calculation, noting the mine is not expected to generate such profits. In response, Matsa Gold Pty Ltd and Devon Gold Pty Ltd have appointed KordaMentha as Administrators, with Matsa stating it will vigorously defend itself against BCM’s claims. These appointments do not extend to Matsa Resources Limited or its other subsidiaries.
Amidst these challenges, Matsa revealed an ongoing internal review of the Devon mine plan and operations, initiated on 21 August 2026, focused on improving production rates through geological reconfirmation, increasing mining grades, and optimising mining practices. Furthermore, Matsa has increased its existing secured debt facility with Deutsche Balaton Aktiengesellschaft (DBA) from $17.5 million to $37.5 million, primarily to cover the payments made to BCM. The repayment date for this facility has been extended to 30 June 2027, subject to certain conditions, and DBA has received additional security. Matsa has also secured a new $4 million loan facility from DBA to refinance existing loans with Nitro Super Pty Ltd and Morkim Pty Ltd, consolidating its secured debt. Matsa’s shares remain suspended from trading pending the completion of its operational review and a market update.
