FireFly Metals Ltd (ASX:FFM, TSX:FFM, OTC:FFMFF) has outlined a multi-billion-dollar development case for its Green Bay Copper-Gold Project in Newfoundland, Canada, while launching an equity raising of up to A$190 million to accelerate the project towards a final investment decision.
A Preliminary Economic Assessment (PEA) for the Ming Mine evaluated a 1.8 million tonnes per annum (Mtpa) base case and a larger 4.6Mtpa alternative, delivering after-tax net present values (NPV7%) of around A$2.2 billion and A$3.0 billion respectively.
The base case envisages an initial mine life of about 32 years, average steady-state production of around 50,000 tonnes of copper equivalent (CuEq) metal annually over 14 years and peak production of 60,000 tonnes, with a 1.9-year payback period.
The larger 4.6Mtpa case outlines an initial mine life of about 22 years, average production of around 90,000 tonnes of CuEq over an 11-year steady-state period, including 6 years averaging around 100,000 tonnes annually and peak production of about 106,000 tonnes.
Summary of key metrics from the Green Bay Ming Mine PEA.
A$190 million funding package
Alongside the PEA, FireFly has launched an A$180 million equity raising comprising an Australian institutional placement and Canadian bought deal financing at A$1.78 per new share.
The company also plans a non-underwritten share purchase plan (SPP) to raise up to a further A$10 million at the same price.
Combined with existing cash and liquid investments of around A$183 million, completion of the raising and SPP would lift FireFly's pro-forma cash and liquid investments to approximately A$373 million before transaction costs.
Initial advice also indicates the 1.8Mtpa base case could support commercial debt of more than US$350 million, or around A$500 million, compared with estimated net initial project capital of A$513 million.
Proceeds will be directed towards early project works, procurement of long-lead items, the 1.8Mtpa feasibility study, a pre-feasibility study on the 4.6Mtpa alternative and further resource growth ahead of a final investment decision.
Green Bay resource grows
The Green Bay project is now underpinned by an updated Mineral Resource Estimate of 60.2Mt at 2.4% CuEq in the Measured and Indicated categories, plus 23.5Mt at 2.5% CuEq Inferred.
Within this is a high-grade core containing 18.1Mt at 4.3% CuEq Measured and Indicated and a further 7.0Mt at 4.4% CuEq Inferred.
FireFly highlighted 79% of the Ming Mine resource is now in the higher-confidence Measured and Indicated categories, while mineralisation remains open and six underground rigs are targeting further high-grade extensions.
The PEA incorporates only the Ming deposit and excludes Little Deer and regional targets including Rambler, East Mine, Main Mine, Tilt Cove and Nugget Pond, providing scope for further resource growth outside the current development study.
Mined ore tonnes per annum shown by Mineral Resource category for the 1.8Mtpa (4,800tpd) base case.
Next steps
FireFly has started work on feasibility studies targeted for completion in Q1 2027, alongside a maiden Ore Reserve.
The company will continue resource growth and conversion drilling at Ming, test historical copper-gold targets within 5 kilometres of the mine and maintain district-scale exploration with 3 surface rigs.
Early works and construction permitting will also progress while FireFly advances discussions with banks, offtake groups and other potential project financiers.
Regulatory approvals are already in place for select early works, with FireFly targeting a final investment decision and construction in the first half of 2027 and potential first concentrate production in mid-2029.
About FireFly Metals
FireFly Metals is an emerging copper-gold company focused on advancing the high-grade Green Bay Copper-Gold Project in Newfoundland and Labrador.
Green Bay hosts 60.2Mt of Measured and Indicated resources and 23.5Mt of Inferred resources and is being advanced through resource expansion, exploration and development studies.
FireFly also holds a 90% interest in the Limestone Well Vanadium-Titanium Project in Western Australia.