Firefinch pursues $25m

West Perth-based Firefinch is looking to raise more capital to develop its Mali gold and lithium projects in the company’s second round of fundraising activity this calendar year. 

On offer are company shares at 58 cents, a 10.8 per cent discount on its last closing price, alongside the prospect of an entitlement to a planned in-specie distribution in Firefinches’ Leo Lithium demerger tabled for 2022.

The goldminer last raised capital in June but was unable to undertake a follow up share purchase plan due to ASIC requirements preventing the company from doing so more than once a year.

The last share purchase plan conducted by Firefinch closed in late October 2020.

Should the share purchase plan proceed as expected, Firefinch will have raised $72 million in 2021.

Subscriptions under this round of fundraising are capped at $30,000 and are tipped to add another 43.1 million new shares to its register.

Proceeds from the raise are set to fund exploration and development activities at the company’s 80 per cent owned Morila gold project in Mali.

The company is also looking to lift resources at the Goulamina lithium project from inferred to indicated status and general working capital for the planned demerger.

Leo Lithium is set to host the Goulamina asset following a recent joint venture deal with Chinese company Ganfeng Lithium.

Firefinch shares closed today’s session down 6.15 per cent at 61 cents.