Firefinch Ltd (ASX:FFX) has been granted a trading halt by the ASX ahead of a capital raising announcement.
The halt will remain in place until the start of regular trading on Monday, June 28, or until an announcement is released to the market, whichever occurs earliest.
Firefinch shares last traded at 45 cents while the company’s market cap is approximately A$353.3 million.
Deal to jointly develop Goulamina
Earlier this month, the company secured a deal to jointly develop the Goulamina Lithium Project in Mali, West Africa, with the world’s largest lithium producer by production capacity.
The ASX-listed miner has teamed up with Jiangxi Ganfeng Lithium Co Ltd to establish a 50:50 joint venture that will fast-track Goulamina development.
Under a binding term sheet, Gangfeng has agreed to provide US$130 million in equity funding to support Goulamina’s development, as well as up to US$64 million in debt funding.
This comes as the company continues its primary focus on West African gold.