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Firefinch (ASX:FFX) - Managing Director, Michael Anderson
Managing Director, Michael Anderson
Source: Firefinch
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  • Firefinch (FFX) plans $25 million capital raise through a share purchase plan to ramp-up activities at its projects in Mali
  • Shares are set to be offered at 58 cents each, marking a 10.8 per cent discount to the last closing price
  • Investors will also be entitled to the planned in-specie distribution of Leo Lithium, when it’s listed, pending approvals, in March 2022
  • The funds raised through the SPP are set to go towards ongoing ramp-up and development activities at the Morila Gold Project in preparation of open pit mining
  • Shares have been trading 7.69 per cent lower at 60 cents

Firefinch (FFX) is looking to raise $25 million through a share purchase plan (SPP) to deliver on commitments to ramp-up activities at its projects in Mali.

Eligible shareholders in Australia and New Zealand will have the opportunity to participate in the plan with up to $30,000 available for each shareholder.

Shares are set to be offered at 58 cents each, marking a 10.8 per cent discount to the last closing price, and a 10.8 per cent discount to the five-day volume-weighted average price.

In anticipation of the company’s joint venture demerger entity, Leo Lithium, shareholders will also be entitled to the planned in-specie distribution of the new company when it is listed, pending approvals, in March 2022.

The funds raised through the SPP are set to go towards ongoing ramp-up and development activities at the Morila gold project in preparation of open pit mining.

FFX also plans to use the money for the continuation of exploration, resource development and expansion drilling at the Morila Super Pit, including investigation of the underground potential and to further test the potential of the known deposits and regional tenure.

Additionally, the company is looking to recommence drilling at the Goulamina lithium project to convert inferred resources to indicated, and to further expand the resource base to provide for mine life extensions.

Part of the cash will also be used as general working capital to meet overheads across both the gold and lithium businesses, and support the planned demerger of Leo, and costs of this SPP.

While the company already proposed a share purchase plan in June, this was knocked back due to only one share purchase plan allowed to be undertaken in a 12-month period.

As the company’s last share purchase plan closed in late October 2020, it can now proceed with plans to raise $25 million.

Shares were trading 7.69 per cent lower at 60 cents at 10:34 am AEDT.

FFX by the numbers
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