Matsa Resources Limited has suspended mining operations at the Devon Gold Project after mining contractor Blue Cap Mining Pty Ltd appointed receivers and managers to two operating subsidiaries following a dispute over contractor payments and profit-share claims.

The suspension affects the Devon site within the broader Lake Carey Gold Project, which is owned by Matsa Resources Limited through subsidiaries Matsa Gold Pty Ltd and Devon Gold Mining Pty Ltd. Prior to the operational halt, Matsa completed Campaign 2 processing at Devon, generating $28.74M in gold sales from 51,562 dry tonnes processed at an average price of $7,054 per ounce, producing 4,074 ounces of gold.

Blue Cap Mining suspended operations on 9 September 2026 citing unpaid invoices and accelerated payment demands for an initial working capital facility of $6M plus accrued interest. Matsa subsequently paid $22.8M to settle all outstanding invoices in full. Despite this payment, the contractor alleged further amounts were owed, including potential future profit share from the Devon mine, and appointed KPMG as receivers and managers to the assets associated with the Devon mine held by Matsa Gold Pty Ltd and Devon Gold Mining Pty Ltd.

Matsa rejects the profit-share calculation, stating that the Devon mine is not expected to generate a profit under the current mine plan that would trigger a profit share entitlement. Furthermore, the contractor holds no security charge over other company assets, including the Fortitude North and Fortitude gold projects. In response to the receivership appointment, Matsa Gold Pty Ltd and Devon Gold Mining Pty Ltd appointed KordaMentha as administrators. The company's shares remain suspended from trading pending an internal operational review of the Devon mine plan and performance that commenced following a trading halt initiated on 21 August 2026.

To fund the settlement of outstanding invoices to the mining contractor, Matsa increased its existing loan facility with Deutsche Balaton Aktiengesellschaft from $17.5M to $37.5M, with $32.8M drawn down under the expanded arrangement. The repayment date for the expanded facility has been extended to 30 June 2027, subject to conditions subsequent including the grant of an ASX waiver under Listing Rule 10.1. Additionally, Matsa finalised a new $4M loan facility with Deutsche Balaton Aktiengesellschaft to refinance existing loan facilities with Nitro Super Pty Ltd and Morkim Pty Ltd.

Read the full announcement: Devon Gold Project and Corporate Update