FireFly Metals to fast-track Green Bay copper-gold project after successful $65m raising

FireFly Metals (ASX: FFM) is set to accelerate development of its exciting Green Bay copper-gold project in Canada after raising $65 million in a highly-successful capital raising.

The company received strong support from several existing and new Australian and international institutions for the placement.

The new funds will support the next phase of resource growth at Green Bay, where the company currently has four drill rigs operating and is advancing underground plans.

Resource growth

Managing director Steve Parsons said the capital raising puts FireFly in an exceptional position to unlock the full potential of the Green Bay project.

“With four rigs operating, this multi-pronged campaign is aimed at delivering rapid growth in our resource while also testing exciting new targets delineated close to the known mineralisation using down-hole geophysics,” Mr Parsons said.

“The completion of the second phase of the 1,500-metre exploration drill drive will facilitate expanded underground drilling access, while our strengthened balance sheet will also allow us to ramp up regional exploration targeting new discoveries along the broader mine corridor.”

‘Strong outlook’

FireFly chair Kevin Tomlinson recently described the past 12 months as having helped establish the company as a rapidly growing copper explorer and developer with a strong outlook underpinned by exceptional drilling results and abundant potential.

The company now owns 100% of Green Bay, located on the Baie Verte peninsula of north-east Newfoundland, after completing the purchase in October last year.

The project, which consists of multiple assets headlined by the Ming underground mine, has a current resource of 39.2 million tonnes at 2.1% for 811,000t copper equivalent.

Busy program planned

The placement proceeds will be used to help build the resource numbers and undertake underground work at Ming, with a compliant mineral resource estimate due for release in October.

The program will include 100,000m of step-out resource growth and in-fill drilling (in addition to the 30,000m already completed), as well as discovery drilling to test the newly-defined target zones, mine extensions and regional targets.

The new funds will also support underground development and site costs including a 750m Phase II extension of the underground exploration drill drive to 1,500m.