Firefinch raises $100m for Mali projects

Firefinch is set to pocket $100 million from institutional investors to advance the Morila gold and recently revised Goulamina lithium project in Mali.

The company offered up shares at 67 cents per share, an 11.3 per cent discount on its December 8 trading price, to raise the funds hoped to accelerate both projects.

It marks the third equity raising activity undertaken by the company this calendar year after raising $25 million in October and $47 million in June.

Another 149.3 million Firefinch shares are set to hit the market once the placement settles.

Around $57 million of equity raise proceeds will go towards Morila capital expenditure and regional exploration.

Some $9 million will cover Goulamina exploration, project expenditure and costs associated with its proposed joint venture and demerger.

About $10 million will pay for Firefinch’s indiciative participation in the proposed Leo Lithium entitlement offer to maintain Firefinch's pro-rata interest in Leo Lithium following the planned demerger.

Firefinch announced the outcome of its definitive feasibility for Goulamina last week, which valued the project at around $4.1 billion and estimated initial stage one capital expenditure $US255 million ($A363 million).

The remaining $24 million will go towards working capital and offer costs.

Firefinch managing director Michael Anderson said demand for the raise was a strong endorsement of the projects.

“This is a fantastic outcome for Firefinch which speaks to the outstanding growth potential inherent in our assets, the exceptional work our team has done ramping up gold production to date and in completing an updated definitive feasibility study for Goulamina,” he said in a statement.

“We are now well funded to deliver on our strategic vision of becoming a West African gold producer of scale, as well as developing the next major lithium project to enter production, ahead of our Goulamina demerger in the new year.”

Canaccord Genuity (Australia) acted as global coordinator, joint lead manager and joint bookrunner to the placement, while Jett Capital Advisors acted as joint lead manager and joint bookrunner to the Placement.

Local firm Euroz Hartleys was co-manager, alongside Petra Capital.

Gilbert + Tobin acted as Australian legal counsel.

Firefinch shares closed the day down 6.62 per cent to trade at 70 cents.