FireFly Metals Ltd (ASX:FFM, TSX:FFM, OTC:MNXMF) has successfully completed its Canadian bought deal offering, raising gross proceeds of about C$28.4 million (A$32 million).
The offering, which saw the sale of 33 million ordinary shares at C$0.86 per share, is part of a broader equity raising strategy designed to support the company’s growth initiatives, including its ambitious exploration projects in Canada and Australia.
Canadian offering adds to broader capital raise
The Canadian bought deal offering was led by BMO Capital Markets as sole underwriter and bookrunner. The offering included the full exercise of the over-allotment option, allowing BMO to purchase its maximum entitlement to the offered shares.
FireFly was advised by BMO Capital Markets as sole underwriter and bookrunner on the Canadian offering. Osler, Hoskin & Harcourt LLP served as the Canadian legal advisor, and Hamilton Locke acted as the Australian legal advisor for the company.
This successful completion adds to FireFly's broader capital-raising efforts, which include a charity flow-through placement and a two-tranche institutional placement.
The charity flow-through placement, which closed earlier this month, raised approximately A$11.2 million (~C$10.0 million), priced at A$1.49 per share.
Meanwhile, the institutional placement raised an additional A$54.9 million at a price of A$0.96 per share.
Read more: FireFly Metals completes charity flow-through placement and tranche 1 of institutional raise
The overall gross proceeds of the completed equity raising amount to A$70.1 million (~C$62.3 million) before costs, positioning FireFly Metals for its next phase of exploration and development.
Share purchase plan to offer further investment opportunity
In addition to the completed equity raising, FireFly has launched a share purchase plan (SPP) to offer eligible shareholders the opportunity to subscribe for up to A$30,000 worth of shares at A$0.96 per share, mirroring the price of the institutional placement. The SPP aims to raise up to A$5 million, and FireFly has reserved the right to accept oversubscriptions.
The company has outlined the following key dates in the indicative timetable for the remaining aspects of the equity raising and SPP:
- Close of SPP Offer: Monday, July 7
- Issue of SPP Shares: Monday, July 14
- General meeting for shareholder approval of tranche two placement shares: August 2025
- Settlement and trading of tranche two placement shares: August 2025
Future growth plans
The capital raised through the equity offering will be used to advance FireFly’s key assets, particularly the Green Bay Copper-Gold Project in Newfoundland, Canada. The project includes the Ming underground mine and the Little Deer exploration project, both of which are central to FireFly’s strategy of growing its copper-gold mineral resources.
The company aims to increase the current resources, which stand at 24.4 million tonnes (Mt) of Measured and Indicated Resources at 1.9% for 460,000 tonnes copper equivalent (CuEq), and 34.5Mt of Inferred Resources at 2% for 690,000 tonnes CuEq.
In addition to the Green Bay project, FireFly holds a 70% interest in the high-grade Pickle Crow Gold Project in Ontario, which contains an Inferred Resource of 11.9Mt at 7.2 grams per tonne for 2.8 million ounces (Moz) gold.
This project, along with FireFly’s 90% interest in the Limestone Well Vanadium-Titanium Project in Western Australia, rounds out the company’s diverse portfolio of high-potential assets.
With a clear strategy to grow its copper-gold mineral resources and a strong exploration program under way, FireFly is on track to become a globally significant copper-gold company, with further development milestones expected in the coming months.