FireFly Metals (ASX: FFM) has completed an equity raising totalling $180 million, with the proceeds earmarked to advance work at the Green Bay copper project in Canada.

The capital raise includes a $30 million bought deal covered by an underwriting agreement between the company and BMO Nesbitt Burns Inc., acting as lead underwriter and sole bookrunner, together with RBC Dominion Securities Inc., CIBC World Markets Inc. and Canaccord Genuity Corp.

In addition to the equity raising, FireFly intends to give eligible shareholders the opportunity to participate in a non-underwritten share purchase plan (SPP) to raise up to a further $10 million.

The net proceeds of the equity raising and the SPP will be used primarily to advance project implementation at the Green Bay copper-gold project and to provide significant balance sheet strength ahead of the completion of a project financing process. Planned uses of funds include:

• Development and early works, including underground development for drilling platforms, ventilation and electrical upgrade platforms, and surface early works;
• Underground drilling targeting upper mine extensions, M&I Resource growth, geophysical targeting, parallel lodes and depth extensions;
• Regional exploration drilling, including new discovery targeting across the district;
• Technical studies, including a definitive feasibility study on the 1.8 million tonnes per annum (Mtpa) base case and a pre-feasibility study on the 4.6Mtpa alternative case; and
• Corporate and transaction costs and working capital, to provide the flexibility needed to conduct additional project development activities and early works.

The high-grade Green Bay copper-gold project in Newfoundland is advancing towards development. A preliminary economic assessment (PEA) shows the potential for a high-grade, low-cost and long-life operation, with a pathway to produce 100,000 tonnes of copper per annum. The funding arrives as copper remains a central input in the global energy transition, used extensively in electrical wiring, grids, electric vehicles and renewable energy infrastructure, which has kept developer interest in copper-focussed projects elevated.

Green Bay, formerly known as the Tilt Cove project, is located in a historic copper mining district of Newfoundland that has seen commercial copper production dating back to the 19th century. The project is underpinned by 60.2 million tonnes (Mt) of Measured and Indicated mineral resources at 2.43% for 1,464Kt copper equivalent (CuEq), and 23.5 Mt of Inferred mineral resources at 2.51% for 592Kt CuEq.

By strengthening its balance sheet before completing the planned project financing process, FireFly positions itself to fund drilling, studies and early works while the definitive feasibility study on the 1.8Mtpa base case and the pre-feasibility study on the 4.6Mtpa alternative case progress — milestones that will shape the project's development path.

FFM shares were up 2.27% to $1.81, with a market capitalisation of $1.356 billion.

The material provided in this article is for information only and should not be treated as investment advice. Readers are encouraged to conduct their own research and consult a certified financial adviser before making any investment decisions.

Source: The Market Online