HomeBattery metalsFirefinch to raise up to $25 million

Firefinch to raise up to $25 million

Firefinch intends to offer eligible shareholders in Australia and New Zealand the opportunity to participate in a SPP of up to $30,000 per shareholder.

The SPP not only affords eligible Firefinch shareholders the opportunity to increase their investment in the Company, should they desire, but for those who remain shareholders at the relevant record date, will also ensure an entitlement to the planned in-specie distribution of Leo Lithium shares when Leo is demerged in early 2022.

Only eligible Firefinch shareholders will receive the planned in-specie distribution of Leo shares at no cost as part of the demerger.

As previously announced Firefinch was unable to undertake a share purchase plan concurrent with the placement conducted in June 2021 due the requirements of the applicable ASIC instrument, which only permits one share purchase plan in a 12-month period.

The last share purchase plan conducted by Firefinch closed in late October 2020.

Funds raised under this SPP will be applied to:

  • 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 685km2 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, and costs of the SPP.

The Company intends to target raising up to $25 million (before costs) (43.1 million new shares) under the SPP, however the Company reserves the right to accept oversubscriptions or to scale back applications in its absolute discretion.

In addition to the SPP, as previously advised, the Company continues to target debt funding of approximately US$50 million and remains in advanced discussions with potential financiers.

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