FireFly Metals is strengthening its balance sheet with a A$180 million capital raise as it accelerates development of its Green Bay copper-gold project in Canada.
Australian-listed mining company FireFly Metals is raising approximately A$180 million through institutional placements in Australia and Canada, giving the company fresh funding to push ahead with its Green Bay project in Newfoundland and Labrador.
The company plans to issue about 101 million new shares at A$1.78, or C$1.76, per share.
The capital raising includes a A$150 million Australian institutional placement and a A$30 million Canadian bought-deal private placement.
FireFly intends to use the funds for early project development, long-lead equipment procurement and feasibility work.
Green Bay Moves Closer To Development
The company is advancing two potential processing scenarios for Green Bay.
Its base case involves a processing capacity of 1.8 million tonnes a year, while a larger 4.6 million tonnes a year expansion is also being assessed.
A final investment decision is expected by mid-2027.
FireFly managing director Steve Parsons said the funding would allow the company to pursue exploration, feasibility studies and equipment procurement simultaneously.
The company also plans to offer eligible shareholders the opportunity to participate in a non-underwritten share purchase plan targeting an additional A$10 million at the same issue price.
Strong Numbers From Green Bay Assessment
FireFly’s preliminary economic assessment has painted an optimistic picture of the project’s potential.
Under the 1.8-million-tonne-a-year base case, restarting production at the Ming mine would require estimated capital expenditure of A$513 million.
The project is forecast to deliver an after-tax net present value of approximately A$2.2 billion, with an internal rate of return of 42% over an initial 32-year mine life.
Payback is estimated at just 1.9 years.
At steady-state production, the base case could produce around 50,000 tonnes of copper equivalent annually over a 14-year period and generate roughly A$290 million in annual after-tax free cash flow.
Bigger Expansion Could Deliver More
The larger 4.6-million-tonne-a-year scenario significantly increases the project’s potential output and financial returns.
FireFly estimates an after-tax NPV of A$3 billion and an IRR of 40% over an initial 22-year mine life.
The expanded operation could produce approximately 90,000 tonnes of copper equivalent per year at steady state, with annual after-tax free cash flow estimated at around A$550 million.
The expansion would require about A$476 million in additional capital, which the company says could largely be funded from cash generated by the initial operation.
Exploration Continues Alongside Development
Green Bay’s resource base currently includes 60.2 million tonnes grading 2.4% copper equivalent in measured and indicated resources, alongside a further 23.5 million tonnes grading 2.5% copper equivalent in the inferred category.
FireFly is not relying solely on the existing resource.
Six drill rigs are currently focused on underground exploration around the Ming mine, targeting further high-grade resource growth.
The company is also exploring several historical copper and gold targets within five kilometres of the mine and expects to publish a maiden resource for its first district target in the next quarter.
With copper demand attracting increasing attention globally, FireFly is positioning Green Bay as a long-term growth opportunity — backed by fresh capital, an expanding resource base and a development timeline targeting a final investment decision in 2027.
Main Image: Discovery Alert
