- Firefinch (FFX) completes a bookbuild process to raise $47 million through a placement
- Around 117 million new shares will be issue to investors at 40 cents per share — representing an 11.1 per cent discount to the last closing price
- Firefinch is using the money raised to progressively increase the Morila Gold Mine’s annual production rate to 200,000 ounces of gold by 2024
- The money is also going towards the demerger of the Goulamina Lithium Project into a separate ASX-listed company
- Firefinch was trading 7.78 per cent down at 41.5 cents
Firefinch (FFX) has completed a bookbuild process to raise $47 million through a placement.
Under the placement, Firefinch will issue around 117 million new shares to new and existing investors at 40 cents per share. The issue price represents an 11.1 per cent discount to the last closing price and a 13.7 per cent discount to the five-day volume-weighted average market price.
In addition to an expected debt facility, Firefinch will use the funds to advance its Morila Gold Mine. The company aims to progressively increase the mine’s annual production rate to 200,000 ounces of gold by 2024.
Firefinch will also use the money to support the demerger of the Goulamina Lithium Project into a separate ASX-listed company. This will occur once the recently announced acquisition deal with Ganfeng Lithium has closed.
Gangeng is the world’s largest lithium producer and agreed to acquire a 50 per cent stake in Firefinch which will help bring the lithium operation into production.
Managing Director Michael Anderson was pleased with the support the placement received and stated it would help Firefinch with its growth strategy.
“This equity funding, combined with the expected debt funding during the September quarter of 2021, will enable us to deliver on our strategic vision of becoming a West African gold producer of scale, as well as progress our Goulamina demerger plans,” Mr Anderson said.
“Will look forward to delivering continued growth for shareholders as Firefinch enters this exciting new phase.”
The placement is expected to settle on June 30 and shares are expected to be allocated and commence trading on the following day.
Firefinch was trading 7.78 per cent down at 41.5 cents at 10:17 am AEST.