Matsa Resources (ASX:MAT) is set to start an exploration and development drilling campaign in the first quarter, starting with the Fortitude North prospect in Western Australia, with an initial 10,000-meter diamond drilling campaign, according to a Thursday Australian bourse filing.

It outlined an over 1.7 kilometers exploration target at Fortitude North, ranging between 10 million tonnes and 23 million tonnes of material at

2 grams per tonne grade of gold to 2.5g/t gold for 643,000 gold to 1.85 million gold ounces.

It also secured a new debt facility for a total commitment of up to AU$17.5 million under an agreement with major shareholder, Deutsche Balaton, to provide Matsa with further funding for the development of the Devon Pit gold mine and its general working capital requirements.

Under the terms of the debt facility agreement, Matsa is proposing to grant Deutsche Balaton mortgages over certain Devon Pit gold mine tenements and Red October gold project tenements, as well as a general security deed over the assets of Matsa Gold and Red October Gold.

Its shares rose 4% in recent trading on Thursday.