FireFly Metals Ltd (ASX:FFM, TSX:FFM, OTC:MNXMF) has unveiled a major funding package spanning Canada and Australia, securing commitments for roughly C$30 million (A$33 million) via a Canadian bought deal financing alongside a A$101.5 million institutional and flow-through placement at home.
The combined raises — more than A$139 million after a $5 million share purchase plan — represent a significant capital injection as FireFly accelerates early works and technical studies at its high-grade Green Bay project in Newfoundland.
Canadian bought deal secured
Under the agreement, BMO Nesbitt Burns Inc. will purchase 19.23 million FireFly shares at C$1.56 apiece on a bought-deal basis, with an option to acquire an additional 15% within 30 days to cover any over-allotments.
The offering will be conducted via a short-form prospectus across most Canadian provinces and may also involve private placements in the United States and offshore jurisdictions. Closing is expected on or around December 17, subject to regulatory approvals.
A$101.5m Australian placement under way
In parallel, FireFly has mandated Canaccord Genuity to raise about A$101.5 million through an Australian equity offering comprising:
- A$16.5 million charity flow-through placement, structured to deliver Canadian tax benefits for participants.
- A$85 million institutional placement to domestic and offshore investors.
Both components are expected to settle around December 12.
The company has also run a share purchase plan (SPP) for eligible shareholders as of the December 1 record date, raising up to A$5 million with capacity to take oversubscriptions.
Funds to support development, drilling and studies
FireFly said proceeds from the Canadian and Australian offerings — along with the SPP — will be channelled into:
- Development and early works at Green Bay, including underground access, drilling platforms, surface works and permitting.
- Technical studies, spanning upscaled mine design options, a PEA/scoping study and a definitive feasibility study.
- Underground and regional drilling for resource growth, infill and new discovery targets.
- General working capital and administration, including transaction costs.
Building momentum at Green Bay
The raises follow a year of rapid growth at Green Bay, where FireFly recently lifted the copper-gold resource to 79.7 million tonnes for 1.74 million tonnes of copper-equivalent metal, underpinned by a high-grade core. The company has now completed more than 130,000 metres of drilling.
FireFly also holds advanced positions at the Pickle Crow gold project in Ontario and the Limestone Well vanadium-titanium project in WA, with Green Bay remaining the central focus as the company pushes towards large-scale development studies.