FireFly Metals (ASX:FFM) has struck a deal to acquire 169km-square of additional ground adjacent to its Green Bay Copper-Gold Project in Canada from Gold Hunter Resources (CNSX:HUNT).
Firefly, which has a market capitalisation of $225.47 million, will purchase the ground for C$15.5 million, comprising C$500,000 in cash and C$15 million in Firefly shares.
Canaccord Genuity Capital Markets acted as financial advisors to FireFly for the acquisition.
The transaction is subject to a number of conditions precedent, including Gold Hunter securing shareholder approval, noting that the company’s board will unanimously recommend the transaction and will be voting their shares in favour of the transaction.
FireFly says this acquisition solidifies the company as a ‘dominant’ landholder in the ‘highly prospective’ Baie Verte VMS mineral district of Newfoundland in Canada.
The company’s Green Bay project hosts a mineral resource of 39.2 million tonnes @ 2.1% for 811,000 tonnes of copper equivalent (CuEq).
FireFly Metals is an emerging copper-gold company focused on advancing its Green Bay project in Newfoundland, Canada.
As of 30 September 2023, the company had $6.825 million cash and cash equivalents at hand, according to its latest quarterly report.
Post-quarter-end, FireFly completed its second tranche placement, receiving $46.3 million and a $5 million share purchase plan.
Write to Aaliyah Rogan at Mining.com.au
Images: FireFly Metals
