- Firefinch (FFX) receives more than double the subscriptions sought for its share purchase plan
- The company has agreed to accept all valid subscriptions, which totalled around $51.36 million – more than double the $25 million initially desired
- Eligible shareholders were able to subscribe for up to $30,000 worth of new fully paid ordinary shares, which are expected to begin trading on Monday
- The company says funds will go towards advancing its Morila Gold Project in Mali, and progressing exploration at its Goulamina Lithium Project
- Firefinch shares are up 2.92 per cent to 70.5 cents at 9:55 am AEDT
Firefinch (FFX) has received more than double the subscriptions sought for its share purchase plan.
The share purchase plan (SPP) attracted very strong demand, with subscriptions totalling around $51.36 million – more than double the $25 million initially desired by the company.
The SPP closed on Friday, with eligible shareholders able to subscribe for up to $30,000 worth of new fully paid ordinary shares at an issue price of 58 cents per share.
In light of the overwhelming demand from shareholders, Firefinch agreed to accept all valid applications.
Just over 88.5 million new shares will be issued on Friday and are expected to trade from Monday 29 November.
“We are humbled by the incredible response to the SPP and the overwhelming show of support from our shareholders,” said Firefinch Managing Director, Dr Michael Anderson.
“Some 2,500 shareholders – approximately 40 per cent of all shareholders – applied for new shares.”
The company said funds will go towards advancing its Morila Gold Project in Mali, with a goal of exceeding 100,000 ounces of production in 2022.
“At Morila, the funds raised will be employed to continue our aggressive exploration effort, to ramp-up mining activities at the satellite pits, improve infrastructure, continue to build the team and prepare for mining the Morila Super Pit next year,” explained Dr Anderson.
Additionally, Firefinch hopes to rapidly progress exploration and development at the Goulamina Lithium Project in southern Mali, ahead of next year’s planned demerger.
Firefinch shares are up 2.92 per cent to 70.5 cents at 9:55 am AEDT.