Firefinch to raise A$47 million for Morila gold mine ramp-up and completion of lithium JV transaction with Ganfeng
(Kitco News) - Firefinch (ASX: FFX) today announced the launch of a placement of new fully paid ordinary shares to raise approximately A$46.9 million (~US$36 million) for the Morila gold mine ramp-up and completion of the joint venture transaction with Ganfeng Lithium to develop the Goulamina lithium project.
At Morila, the company plans dewatering and tailings repatriation from the Morila Super Pit, pre-stripping of Morila and the satellite pits (including Viper, Koting, N’tiola) to allow commencement of open pit mining, mobilisation of contractor mining equipment, refurbishment of power station, and potential hybrid power system installation. The company intends to grow Morila’s production to 170,000 ounces of gold per annum in 2023 and 200,000 ounces of gold per annum in 2024.
Additionally, the proceeds will be used to meet overheads across both the gold and lithium businesses, including supporting the planned demerger of the Goulamina lithium project into a separate ASX-listed company once the Goulamina JV transaction with Ganfeng has completed.
The company said that formal Goulamina demerger process to commence following the closing of the Goulamina JV transaction with Ganfeng announced on 16 June 2021, aiming for the completion in December quarter 2021 with the demerger to follow thereafter.
Firefinch is a Mali focused gold miner and lithium developer. Firefinch has an 80% interest in the Morila gold mine and it currently owns 100% of the Goulamina lithium project.