Firefox Gold (FFOX.V) is currently raising an additional C$2M in a private placement to add more cash to its treasury. The current financing is priced at C$0.18 per unit with each unit consisting of one common share of Firefox as well as half a warrant with each full warrant allowing the warrant holder to acquire an additional share for C$0.27. If Firefox indeed raises C$2M, a total of 11.1M units will be issued resulting in the share count increasing to almost exactly 80M shares while there will be approximately 37.5M warrants outstanding.
Considering the current C$0.18 raise is substantially higher than the C$0.05 raise in April and the C$0.10 capital raise in July, it makes a lot of sense for Firefox to take the money now it’s available. As of July 2nd, Firefox had a working capital position of approximately C$2.2M and we would now expect the company ending the current calendar year with a working capital position of in excess of C$3M if it indeed raises the C$2M in the current financing.
This will put the treasury in an excellent position to keep on working the gold properties in the Central Lapland Greenstone Belt. Firefox has several exploration licenses within walking distance from the high-grade discovery by Aurion Resources (AU.V) and the recent discovery on the Ikkari target by Rupert Resources (RUP.V) which drilled 200 meters of 1.5 g/t almost starting from surface; This Ikkari interval has sent the Rupert share price in the stratosphere, and Rupert currently has a market capitalization of around C$800M as its share price has ten-folded since April.
Disclosure: The author has a long position in Firefox Gold. Firefox is a sponsor of the website.
