PERTH (miningweekly.com) – ASX-listed Firefly Resources has launched a A$6-million capital raise to fund accelerated gold drilling at the Yalgoo project, in Western Australia.
The placement will comprise 40-million fully paid ordinary shares, priced at 15c each to sophisticated and professional investors. The placement will be conducted under Firefly’s existing placement capacity.
The company told shareholders that proceeds from the placement would expand and accelerate ongoing drilling and exploration programmes at Yalgoo, and underpin a maiden drilling programme at the Paterson copper/gold project, also in Western Australia.
“Our recent Yalgoo acquisition and subsequent successful maiden drill programme has put Firefly on the map. Now thanks to the support of existing and new shareholders, including cornerstone holders who have collectively subscribed for half of this placement, we have the capacity to step up our exploration activities at Yalgoo to the next level,” said Firefly MD Simon Lawson.
“Drilling is already under way testing the area surrounding the eastern limb of the Melville deposit where we recently reported spectacular grades. We will use these funds to secure a second reverse circulation rig and our plan is now to keep both rigs turning pretty much until the end of the year, allowing for sensible phases and stages of exploration to accommodate assay turnaround.”
Lawson said that the deliverables from this work would be a maiden Joint Ore Reserves Committee-compliant resource for the Melville deposit by year-end, and new potential discoveries across the underexplored Yalgoo gold field.