Firefinch Ltd (ASX:FFX) is raising funds to expand development and exploration activities at the Morila Gold Project and Goulamina Lithium Project in West Africa through a $25 million share purchase plan.
Firefinch is a Mali focused gold miner and lithium developer with an 80% interest in the operating Morila Gold Mine and what will be a 50% interest through its soon to be demerged subsidiary, Leo Lithium in the Goulamina Lithium Project joint venture with Jiangxi Ganfeng Lithium Co Ltd when the partnership is finalised, expected early next year.
Share purchase plan
Firefinch managing director, Mike Anderson spoke to Proactive last week about the company’s proposed share purchase plan.
The company is offering shares at $0.58 each, a 10.8% discount to the volume weighted average over the last five trading days before the plan was announced. Eligible shareholders may apply to purchase up to $30,000 worth of new fully paid ordinary shares without paying brokerage or other transaction costs.
The share purchase offer opens today at 9:00 am Western Standard Time (12 pm AEST) and will close at 5:00 pm WST (8:00 pm AEST) on Friday, November 19, 2021. The new shares will be issued within five days of the offer closing.
Firefinch reserves the right to end the share plan early should they be oversubscribed; however, directors of the company reserve the right to accept oversubscriptions or to scale back applications in their absolute discretion on a pro-rata basis, by announcement to ASX.
Use of funds
Firefinch will apply funds raised during the share purchase plan to the following:
- Ongoing ramp-up and development activities at the Morila Gold Project, including further dewatering and tailings repatriation from the Morila Super Pit, pre-strip and mining of the satellite pits at Viper and N’Tiola, and pre-stripping at Morila to allow commencement of open pit mining;
- Continuation of exploration, resource development and expansion drilling at the Morila Super Pit (including investigation of the underground potential), to build on Firefinch’s recent drilling success, and to further test the potential of, not only the known deposits, but also the 685 square kilometres of regional tenure;
- The recommencement of drilling at the Goulamina Lithium Project aimed at both converting Inferred resources to Indicated, and further expanding the resource base to provide for mine life extensions, and;
- General working capital to meet overheads across both the gold and lithium businesses, including supporting the planned demerger of Leo Lithium Limited, and costs of the Plan.