Fireweed Metals Corp (TSX-V:FWZ, OTCQB:FWEDF) is poised to further advance its assets in northern Canada, boosted by a placing, which raised C$35 million and sees the Lundin Family, a name synonymous with global mining operations, become a major cornerstone shareholder.
As reported on November 30 this year, the original offering was for gross proceeds of up to C$27,523,500 but was oversubscribed due to strong investor interest.
The Lundin Family and Associates subscribed for 27 million shares, while other key shareholders who took part were Larry Childress for 3.3 million shares and Teck Resources for 3.4 million shares.
"We welcome the Lundin Family as a major cornerstone shareholder and are excited to show them and all our other shareholders what we can do on a well-funded program," said Brandon Macdonald, Fireweed's CEO in a statement.
READ: Fireweed Metals upsizes non-brokered private placement to gross proceeds of up to $35M
"We also thank key shareholders such as Larry Childress and Teck for continuing to back us. Fireweed is now financed for our biggest-ever program in 2023 and have our most catalyst-rich year ahead of us," he added.
Fireweed says it is at the "leading edge" of critical minerals project development and has three projects in Canada:
- The Macmillan Pass zinc-lead-silver Project in the Yukon, which is host to the Tom and Jason zinc-lead-silver deposits with a resource and a preliminary economic assessment (PEA). It is also home to the Boundary Zone, Boundary Zone West, Tom North Zone and End Zone, which have significant zinc-lead-silver mineralization drilled but not yet classified as resources. A large 2022 drill program is now complete and assay results are being announced.
- The company also has a binding Letter of Intent to acquire 100% interest in the 37.6 square kilometre (sq km) Mactung tungsten project adjacent to Macmillan Pass. Mactung contains historic resources that make it one of the largest and highest-grade undeveloped tungsten resources in the world. Due diligence and work on historic data as well as relogging and sampling of historic core are underway ahead of a potential new resource estimate.
- Fireweed also owns 100% of the 128.75 sq km Gayna River project located 180km north of Macmillan Pass. It is host to extensive critical minerals mineralization including zinc, gallium and germanium as well as lead and silver, outlined by 28,000 metres of historic drilling and significant upside potential. The 2022 field program of airborne LiDAR topographic surveying and ground geophysics is now complete and data is being interpreted toward defining 2023 drill targets.
The offering consisted of three parts for gross proceeds of $35,139,720. These are:
- The issue of 31,713,027 company shares at C$0.74 each
- The issue of 4,672,818 flow-through company common shares at C$0.88 per share (flow-through shares)
- The issue of 6.3 million flow-through company common shares at a price of C$1.20 per share through a charitable donation arrangement (premium flow-through shares).
The proceeds will be used for the exploration and development of the company’s projects in northern Canada, and for general working capital purposes, Fireweed said.
Gross proceeds from all flow-through and premium flow-through shares will be used on the firm's zinc projects to incur Canadian Exploration Expenses (CEE) which will qualify as 'flow-through critical mineral mining expenditures”' under the Income Tax Act (Canada).
Closing of the offering is subject to certain customary conditions, including all necessary regulatory approvals and acceptance of the TSX Venture Exchange.
Contact the writer at giles@proactiveinvestors.com