FireFly Metals Ltd (ASX:FFM, TSX:FFM, OTC:MNXMF) has locked in commitments to raise about A$134.1 million and is seeking a further A$5 million via a share purchase plan (SPP), with all new capital to be directed towards advancing the Green Bay Copper-Gold Project in Canada.
The equity raising is being implemented in three tranches: a ~A$16.4 million (C$15 million) charity flow-through placement to Canadian investors priced at about A$2.09 per share; an A$85 million institutional placement at A$1.70 per share; and a ~A$32.8 million (C$30 million) Canadian bought deal offering at C$1.56 (A$1.70) per share, with an over-allotment option of up to an additional C$4.5 million.
In parallel, FireFly plans to offer eligible shareholders in Australia and New Zealand the opportunity to subscribe for up to A$30,000 of new shares under a non-underwritten SPP at A$1.70 per share, tarreceiveing up to an extra A$5 million before costs, with the capacity to accept oversubscriptions at the company’s discretion.
On completion of the raisings, FireFly expects to hold pro-forma cash of about A$244.1 million before transaction costs, strengthening its balance sheet ahead of a final investment decision on Green Bay.
“This highly successful raising means we can embark on a no-holds-barred drilling campaign aimed at creating further shareholder value in a very timely manner,” FireFly managing director Steve Parsons stated: “We will increase the drilling fleet to nine rigs as part of an aggressive onslaught tarreceiveing extensions to known mineralisation and new regional prospects.
“We are also progressing towards a Final Investment Decision by derisking the Green Bay Copper-Gold Project by embarking on Upscaled Mining Studies which are expected to be completed in the first half of CY26.
“The name of the game at Green Bay is clearly drive value through the drill bit and derisk a large-scale copper-gold project. So that’s exactly what we are going to do”.
Use of funds
Net proceeds from the equity raising and SPP will be deployed primarily at Green Bay. Planned utilizes include:
- Development and early works, covering underground development, drilling platforms, surface works and permitting.
- Technical studies, including upscaled mine options, a preliminary economic assessment/scoping study and a definitive feasibility study.
- Underground drilling, aimed at resource growth, infill drilling and new discoveries.
- Regional exploration drilling tarreceiveing new discoveries across the wider district.
- General administration and working capital, including transaction costs associated with the funding package.
The expanded funding pool is designed to support an intensive multi-rig drilling and study program intconcludeed to grow and upgrade the Green Bay Mineral Resource and de-risk the project ahead of development.
Timetable
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