PERTH (miningweekly.com) – ASX-listed Firefinch has launched a A$47-million capital raise to fund the ramp-up of production at its Morila gold mine, in Mali, to 200 000 oz of gold by 2024.
The company will place some 117-million new shares, at a price of 40c each, under its existing placement capacity.
The placement price represented an 11.1% discount to Firefinch’s last closing price on June 23, and a 13.7% discount to the company’s five-day volume weighted average share price.
“The successful completion of the placement will allow Firefinch to continue our significant momentum in both our gold and lithium business as we progress towards becoming a 200 000 oz/y gold producer by 2024 at Morila, and finalise completion of the joint venture transaction with Ganfeng to develop Goulamina,” said Firefinch MD Dr Michael Anderson.
Firefinch earlier this month revealed details of a $130-million transaction with the world’s largest lithium developer Jiangxi Ganfeng Lithium Co to establish a joint venture (JV) at the Goulamina project, also in Mali.
Under the terms of the agreement, Ganfeng would make a $130-million cash investment into Mali Lithium, which holds Firefinch’s interest in the Goulamina project, in return for a 50% interest in the project vehicle.
In addition Ganfeng would also secure up to $64-million in debt funding that would bring the Goulamina project into production.
Firefinch has previously proposed the demerger of Goulamina into a separately listed company to create further value for shareholders.
Meanwhile, Anderson noted that the company had systematically progressed Morila from a tailings treatment operation to a gold mining operation of scale, with demonstrated production credentials and significant upside.
“The team has delivered a life-of-mine plan, commenced dewatering at the Morila super pit, commenced mining at Morila Pit 5, recommissioned the communion circuit, and most recently appointed international contractor Mota-Engil, and the Malian-owned Inter-Mining Services as the mining contractors for Morila.”