Firefly Metals announces $25.8 million bought deal
FireFly Metals Ltd. [FFM-TSX, ASX] said BMO Capital Markets has agreed to purchase on a bought deal basis 30 million ordinary shares of the company for 86 cents (96 Australian cents) generating gross proceeds of $25.8 million.
The company has also granted BMO an option to purchase up to an additional 10% of the offering to cover overallotments, if any. That option remains open for 30 days following closing of the Canadian offering. The Canadian offering is expected to close by June 20, 2025, subject to regulatory approvals.
Separately, the company has also struck a deal with Canaccord Genuity to raise $46 million (Australian) concurrently with the Canadian offering. The Australian offering is expected to consist of a flow-through placement of $11.2 million (Australian) and an institutional placement of $29.9 million (Australian). Firefly will also separately undertake a retail share purchase plan (SPP) of up to $5 million (Australian) (with the ability to accept oversubscriptions, at the discretion of the company). The flow-through and placement are expected to close by June 13, 2025, with the SPP to be completed subsequently.
Net proceeds of the Canadian and Australian offerings will be use primarily for expenditures at the Green Bay copper-gold project in Newfoundland, including underground development, resource extension and infill drilling, regional and near-mine exploration and drill testing, preconstruction, and study works. Net proceeds will also be used for transaction costs and working capital.
The shares were unchanged at 96 cents on Thursday. The shares trade in a 52-week range of $1.03 and 59 cents.
FireFly is an emerging copper-gold company with a focus on advancing the high-grade Green Bay Copper Gold Project in Newfoundland. The Green Bay projects hosts an measured and indicated resource of 24.4 million tonnes of 1.9% for 460,000 tonnes of CuEq and an inferred resource of 34.5 million tonnes at 2.0% for 690,000 tonnes of CuEq. The company has a clear strategy for rapidly grow the copper-gold mineral resource to demonstrate a globally significant copper-gold asset. In keeping with that goal, the company has launched a 130,000-metre drilling program.
FireFly also hosts a 70% interest in the high grade Pickle Crow Gold Project in Ontario. The current inferred resource stands at 11.9 million tonnes at 7.2 g/t or 2.8 million ounces of gold.
The company also holds a 90% interest in the Limestone Well Vanadium-Titanium Project in Western Australia.
FireFly was in the news recently when it agreed to acquire the Tilt Cove Project in Newfoundland from Signal Gold Inc. for $4.0 million in total compensation.
The announcement came after Signal Gold recently agreed to be acquired by NexGold Mining Corp. [NEXG-TSXV] in a move that is expected to create a top near-term gold developer advancing