Firefly Metals (ASX:FFM) has launched a $190 million equity raising to advance development and exploration at its Green Bay Copper-Gold Project in Newfoundland, Canada.
The raising comprises a $150 million Australian institutional placement and a C$29.6 million ($29.86 million) Canadian bought deal financing, both priced at $1.78 per share. The company is also planning to arrange a non-underwritten share purchase plan (SPP) targeting up to an additional $10 million at the same price.
Combined with existing cash reserves of $183 million, the company’s pro-forma cash is set to reach approximately $373 million before transaction costs.
Firefly says proceeds aim to fund early surface works, underground development including drilling platforms, ventilation, and electrical upgrades, as well as feasibility studies and continuous drilling programs.
Firefly Managing Director Steve Parsons says the raising ensures the company can continue unlocking value at Green Bay in an ‘expedited’ manner.
“This strategy involves pursuing several avenues of growth and development in parallel, ranging from ongoing exploration through to feasibility studies and ordering long-lead items,” Parsons says.
“We can implement this rapid value creation strategy knowing we have a very strong balance sheet which enables us to capitalise fully on the exceptional asset we have at Green Bay and the huge macro-opportunity emerging in the copper market.”
Recent PEA outlines ‘strong’ economics
The funding coincides with a recently completed preliminary economic assessment (PEA) demonstrating ‘strong’ project economics across two potential production scenarios.
With a base case of 1.8 million tonnes per annum (Mtpa), the PEA delivered an after-tax net present value (NPV) of $2.2 billion and an internal rate of return (IRR) of 42% over a 32-year mine life.
The PEA used an average steady-state annual production of 50,000 tonnes copper equivalent (CuEq) at C1 cash costs of US$2.05 ($2.86) per pound.
Initial capital costs are estimated at $513 million net of refundable Canadian tax credits, yielding a 1.9-year payback period.
For a 4.6 Mtpa expansion scenario, the PEA generated an after-tax NPV of $3.0 billion and an IRR of 39% over 22 years, averaging 90,000 tonnes CuEq annually. Expansion capital is estimated at $476 million.
Green Bay holds a measured and indicated mineral resource of 60.2 million tonnes (Mt) @ 2.43% CuEq for 1,464,000 tonnes, plus 23.5Mt @ 2.51% CuEq for 592,000 tonnes in the inferred category.
Firefly intends to conduct a Definitive Feasibility Study for the base case and a Prefeasibility Study on the expansion scenario ahead of a final investment decision targeted for mid-2027, with first concentrate production anticipated by mid-2029.
The Australian placement closes on 1 September and the Canadian bought deal on 3 September, with the SPP running from 4 to 23 September.
Firefly Metals is a copper-gold company focused on its Green Bay Project in Canada.
Write to Paula Fabe at Mining.com.au
Images: Firefly Metals
