The company will use the funds to facilitate ongoing development activities at Morila, including pre-stripping to allow open-pit mining.

Firefinch (ASX:FFX) intends to raise up to $25 million in a new share purchase plan (SPP) at an issue price of 58 cents per share to drive ramp-up activities at the Morila Super Pit and the satellite projects (Viper and N’Tiola) in Mali, Africa.

Funds raised will also be used to continue drilling activities at Morila to further enhance the life of mine plan as well as recommence exploration and resource development at Goulamina with the goal to convert inferred resources to indicated and expand the resource base.

The SPP not only provides eligible Firefinch shareholders the opportunity to increase their investment in the company, but for those who remain shareholders at the record date, it also ensures an entitlement to the planned in-specie distribution of Leo Lithium Limited (LEO) shares when Leo is demerged in early 2022.

 

SPP details

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

The company’s shares will be offered at $0.58 per share, a 10.8% discount to the last closing price of $0.65 and a 10.8% discount to the five-day VWAP.

FFX’s record date was 5:00pm (WST) on 22nd October 2021 and was open to all eligible shareholders in Australia and New Zealand.

Further information regarding the SPP (including terms and conditions of the SPP) will be provided to eligible shareholders in the SPP offer booklet, which is expected to be dispatched on November 1.

In addition to the SPP, Firefinch continues to target debt funding of around US$50 million and remains in advanced discussions with potential financiers.

This article was developed in collaboration with Firefinch, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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