Fund managers including Seneca Financial Solutions have invested in Matsa Resources Ltd (ASX:MAT).

The available fund manager commentary sets out few forward-looking catalysts. Seneca Financial Solutions previously saw value in a 1-million-ounce gold resource, cash flow from the Devon mine and an option agreement with AngloGold Ashanti, but says these largely failed to deliver. The $55 million AngloGold option payment kept the company alive, and Seneca hopes to recover some value for unitholders despite writing its position down to zero.

Seneca Financial Solutions highlights severe operational underperformance at the Devon gold mine, which departed materially from its feasibility study assumptions. Seneca also notes that management's choice of expensive debt over equity dilution, together with a global diesel crisis that raised the cost of trucking ore long distances, weakened the business. Matsa's shares are suspended after a subsidiary entered administration, and Seneca expects to lose about 80% of its invested capital.

Matsa Resources Limited is a mineral exploration company with projects in Australia and Thailand. It explores for gold, copper, silver, lead, lithium, tin, rare earth elements and base metals. Its flagship asset is the Lake Carey Gold Project, about 450 square kilometres of prospective tenements in the Laverton Tectonic Zone of the Kurnalpi Terrane, Western Australia. Matsa Resources was incorporated in 2003 and is headquartered in Perth, Australia.