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- Firefinch (FFX) has received firm commitments to raise $100 million through a placement for its Morila Gold Mine
- The company will issue around 149.3 million new shares at 67 cents per share, an 11.3 per cent discount to the last closing price
- Funds will be used to fast track the production growth at Morila to more than 100,000 ounces of gold in 2022
- Additionally, funds will also be used on the proposed demerger of the Goulamina Lithium Project
- Firefinch last traded at 75.5 cents per share
Firefinch (FFX) has received firm commitments to raise $100 million through a placement for its Morila Gold Mine, located in the Sikasso Region of Mali.
The placement will see the company issue about 149.3 million new shares at 67 cents per share, an 11.3 per cent discount to the last closing price.
The funds will be used to fast track the production growth at Morila to more than 100,000 ounces of gold in 2022 and ultimately over 200,000 ounces of gold in 2024.
Money will also be used for the proposed demerger of the Goulamina Lithium Project.
The company is planning to demerge Goulamina into a new ASX listed company, called Leo Lithium.
Firefinch’s Managing Director, Michael Anderson, is pleased with the placement.
“This is a fantastic outcome for Firefinch which speaks to the outstanding growth potential inherent in our assets, the exceptional work our team has done ramping up gold production to date and in completing an updated DFS for Goulamina. We now have a huge opportunity in front of us,” he said.
“2021 has been a transformational year for the Company and this funding provides a tremendous foundation for further growth as we enter 2022. We are now well funded to deliver on our strategic vision of becoming a West African gold producer of scale, as well as developing the next major lithium project to enter production, ahead of our Goulamina demerger in the new year.”
Firefinch entered a trading halt last week while it finalised this placement.
Company shares last traded at 75.5 cents per share.
