Gold miner and lithium developer Firefinch has completed a $71.2m (A$100m) institutional placement to accelerate production growth at the Morila project in Mali.

In a statement, the company said that the oversubscribed placement of fully paid ordinary shares generated strong support from existing shareholders and new investors.

As agreed, Firefinch will issue 149.3 million new shares at A$0.67 per share. The placement settlement is scheduled for 17 December 2021 and the new shares are expected to be allotted and start trading from next week.

Firefinch managing director Michael Anderson said: “The overwhelming demand from both offshore and domestic institutions for this equity raising is a strong endorsement of our corporate strategy and testament to the underlying quality of Firefinch’s Morila and Goulamina Projects.

“We thank our existing shareholders for their ongoing support and welcome many new high-quality institutions to our register.”

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By GlobalData

The company aims to increase gold production at the Morila Project to more than 100,000oz next year. The production will eventually be increased to more than 200,000oz of gold in 2024.

The new proceeds will also help Firefinch to support exploration works at Goulamina Lithium Project, also in Mali. It will also facilitate the proposed demerger of the Goulamina Project into a separate ASX-listed company.

Anderson added: “2021 has been a transformational year for the company and this funding provides a tremendous foundation for further growth as we enter 2022.

“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.”