FireFly Metals Ltd (ASX:FFM, TSX:FFM, OTC:MNXMF)Ltd has received firm commitments totalling approximately A$95 million to accelerate its multi-pronged growth strategy centred on the Green Bay Copper-Gold Project in Newfoundland, Canada.
The company also plans to raise another $5 million via a two-tranche institutional placement, and Canadian bought deal financing.
Through this raise, FireFly will receive an average price of A$1 per share, which is a discount of 2.9% to the last sale price, after allowing for the Canadian flow-through premium.
The funds will support a seven-rig exploration campaign, focused on expanding and upgrading the Mineral Resource, alongside mining studies and pre-construction activities. Net proceeds will also be used for underground development, regional drilling, working capital and transaction costs.
“The overwhelming demand for the raising reflects the quality and growth outlook at Green Bay, our commitment to a multi-rig exploration campaign and the demand among global investors for top-shelf copper-gold projects.
“The combination of the exceptional Green Bay asset, our proven exploration team and our A$135 million cash war chest is the ideal recipe for growth.”
Equity raising structure delivers strong institutional backing
FireFly’s funding package includes approximately A$95 million raised through three mechanisms:
- A$11.2 million via a charity flow-through placement at A$1.49 per share, a 44.6% premium to last close and a 55.0% premium to the offer price under the Institutional Placement of A$0.96 per New Share
- A$54.9 million through a two-tranche institutional placement at A$0.96 per share, which represents a 6.8% discount to FireFly’s last closing price and a 7.2% discount to FireFly’s 10-day volume weighted average price up to and including Wednesday, June 4, 2025
- A$28.8 million (C$25.8 million) from a fully underwritten Canadian bought deal at the same offer price.
Charity flow-through placement attracts Canadian support
The charity flow-through tranche, facilitated by PearTree Securities and Canaccord Genuity, will raise A$11.2 million from Canadian investors.
FireFly will issue around 7.6 million shares at A$1.49, taking advantage of tax incentives for eligible exploration expenditure under Canada’s Income Tax Act.
Shares will be on-sold via a block trade at A$0.96, with tax benefits retained by original Canadian investors. Settlement is expected on June 13, 2025.
Institutional placement includes shareholder approval component
FireFly has received firm commitments to raise A$54.9 million from professional and sophisticated investors through a two-tranche placement at A$0.96 per share:
- Tranche 1 will raise A$26.9 million.
- Tranche 2, worth A$28 million, is subject to shareholder approval at a general meeting in mid-July 2025.
Settlement for Tranche 1 is scheduled for June 13, 2025.
Canadian bought deal adds depth to cross-border strategy
In parallel, FireFly secured C$25.8 million (AU$28.80M) through a Canadian bought deal with BMO Capital Markets, issuing 30 million shares at C$0.86 (A$0.96).
An over-allotment option allows up to 3 million additional shares within 30 days post-closing. Proceeds will support continued development of the Green Bay asset.
Closing is expected on or about June 20, 2025.
Retail investors invited to participate via Share Purchase Plan
FireFly put a Share Purchase Plan (SPP) in place to eligible shareholders on June 4, 2025, enabling subscriptions up to A$30,000 each at A$0.96 per share.
The non-underwritten SPP aims to raise A$5 million and opens on June 16, 2025, closing on July 7, 2025.
SPP shares are expected to be issued on July 14, 2025.