Australian Securities Exchange (ASX)-listed FireFly Metals has secured firm commitments to raise A$65m through a placement to support the next phase of growth at its Green Bay Copper-Gold Project in Canada.
The placement involves the issuance of 68.42 million shares at A$0.95 each.
This issue price reflects a 9.1% discount to the last closing price of A$1.045 per share on 23 September 2024 and a 3.3% discount to the ten-day volume-weighted average price of A$0.982 per share.
The proceeds from the placement, which received strong backing from various existing and new Australian and international institutions, will be utilised to support the next phase of resource growth, discovery and development at the Green Bay Copper-Gold Project in Canada.
The company currently operates four drill rigs at Green Bay and, with an updated mineral resource report expected later this month, plans to conduct an additional 100,000m of drilling to expand and infill the resource, building on the 30,000m already completed.
This new phase of drilling will also focus on discovering new opportunities, both near the mine and regionally, especially following the successful results from DHEM that identified new target zones for high-grade copper mineralisation and down-plunge mine extensions.
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FireFly managing director Steve Parsons said: “This landmark capital raising puts FireFly in an exceptional position to unlock the full potential of the Green Bay Project, with 100,000m of growth drilling planned through 2024/25.
“With four rigs operating, this multi-pronged campaign is aimed at delivering rapid growth in our resource while also testing exciting new targets delineated close to the known mineralisation using down-hole geophysics.
“The completion of the second phase of the 1,500m exploration drill drive will facilitate expanded underground drilling access, while our strengthened balance sheet will also allow us to ramp-up regional exploration targeting new discoveries along the broader mine corridor.”
In April this year, BlackRock acquired a 5.1% stake in FireFly Metals.
