Firefox Gold (FFOX.V) will raise C$200,000 by issuing 4 million units with each unit consisting of one common share of Firefox as well as a full warrant allowing the warrant holder to acquire an additional share of Firefox at C$0.08 for a period of two years after completing the placement.
This obviously is a small placement aiming to keep the dilution to a minimum (the share count will increase from 43.2M shares to 47.2M shares while the fully diluted share count will increase from 62.3M shares to 70.3M shares) while continuing with its efforts to uncover the potential of the Central Lapland Greenstone Belt. Don’t let the diluted share count fool you, in the next three months approximately 1.1M warrants (with a strike price of C$0.35-0.45) will expire out of the money while an additional 2.85M warrants at C$0.60 are expiring in December and an additional 307,000 warrants at C$0.40 will very likely expire unexercised as well. So the 4M warrants that will be issued as part of this placement will merely replace the 4.4M warrants that will expire in 2020.
Although Firefox is still waiting for a barnburner exploration hole, the people running the company are working hard. In the first nine months of the year, Firefox incurred C$1.35M in expenses of which C$1.28M were cash expenses. Of the C$1.28M, C$772,000 was classified as an exploration expense which means 60% of the expense were invested in the ground. Additionally, C$110,000 spent on property acquisitions was capitalized so almost C$0.9M of the total C$1.4M cash outflow ended up on the property. A relatively high 64%. CEO Löfberg is running a tight ship, and we would encourage you to read his recent Open Letter to stakeholders.
Disclosure: The author has a long position in Firefox Gold and will participate in the current financing. Firefox is a sponsor of the website.
