FireFly Metals Ltd (ASX:FFM) has received firm commitments for funding totalling $52 million, sourced from several financial pathways, including a charity flow-through offering, a traditional flow-through offering, and a two-tranche institutional placement.
Up to about 81.5 million shares will be issued at an average price of A$0.64 per share to institutional, professional and sophisticated investors under the capital raising.
Funds will help accelerate drilling and rapidly advance resource growth at the company’s Green Bay Copper-Gold Project in Canada, which holds an NI 43-101-compliant (Canadian standard) inferred mineral resource of 811,000 tonnes of copper equivalent metal.
Game-changing funding
“We decided to raise such a substantial sum in light of the exceptional drilling results we have been generating and the increasingly obvious scope to grow the resource quickly by extending the known mineralisation and testing the compelling targets nearby,” FireFly Metals managing director Steve Parsons said.
“The result is a game-changing event for FireFly. We are now fully funded for the next 18 months, during which time we will have two underground rigs and one surface rig working flat out to grow the resource.
“We are delighted to welcome leading Australian and overseas institutions as shareholders of FireFly and also thank our existing shareholders for their support and look forward to having them join us on our journey as we unlock the immense value of what is clearly an exceptional copper asset in a tier-one location.”
In total, the company will raise:
- $6.7 million under the charity flow-through placement;
- A further $6.7 million under the traditional flow-through placement; and,
- $38.7 million under the institutional placement.
The funds will be used to advance phase two of the development drill drive (1,200 metres) at Green Bay, step out resource growth and discovery exploration, upscaled engineering studies and working capital.
The company says its drill program will grow from the original planned 40,000 metres to an expanded 100,000 metres of drilling that will underpin additional resource growth at the Green Bay Copper-Gold Project.