FireFly Metals Ltd (ASX:FFM, TSX:FFM, OTC:FFMFF) has completed an equity raising for gross proceeds of about A$180 million, providing substantial funding to advance development, drilling and technical studies at its Green Bay Copper-Gold Project in Newfoundland, Canada.
The raising comprised a A$150 million institutional placement at A$1.78 per share and an approximately A$30 million TSX bought deal priced at C$1.76 per share. The placement completed on September 2, while the bought deal closed on September 3.
The money is expected to strengthen FFM's balance sheet ahead of completion of a broader project financing process for Green Bay.
Funding Green Bay development
Proceeds from the equity raising, together with funds from a planned share purchase plan (SPP), will primarily support project implementation at Green Bay.
Planned expenditure includes underground development to establish drilling, ventilation and electrical infrastructure, along with surface early works.
FireFly also plans further underground drilling targeting extensions to the existing mine area, growth in Measured and Indicated resources, geophysical targets, parallel lodes and deeper mineralisation.
Regional exploration drilling will target additional discoveries across the broader Green Bay district.
Technical work will include a definitive feasibility study on a 1.8 million tonnes per annum base-case development and a pre-feasibility study examining an alternative 4.6 million tonnes per annum operation.
Share purchase plan to raise another A$10 million
Eligible shareholders in Australia and New Zealand will also have the opportunity to participate in a non-underwritten SPP targeting up to a further A$10 million.
Investors can subscribe for up to A$30,000 of new shares at A$1.78 each, matching the institutional placement price. The offer is scheduled to open on September 4 and close on September 23, with new SPP shares expected to begin trading on October 1.
Green Bay moving toward development
Green Bay is FireFly’s flagship copper-gold asset. It is advancing toward development following a preliminary economic assessment that outlined the potential for a high-grade, low-cost, long-life mining operation with a pathway to produce 100,000 tonnes of copper annually.
The project hosts 60.2 million tonnes of Measured and Indicated resources grading 2.43% copper equivalent for 1.464 million tonnes of contained copper equivalent, alongside 23.5 million tonnes of Inferred resources grading 2.51% copper equivalent for 592,000 tonnes.