Firefox Gold (FFOX.V) is now fully cashed up as the company just closed a C$2M placement, issuing 20 million units at C$0.10 per unit in two different tranches. Each unit consists of one common share of Firefox Gold as well as a half warrant with each full warrant allowing the warrant holders to acquire an additional share of Firefox for C$0.12.
Firefox’s share price has reacted well on the closing announcement of the first tranche as Crescat Capital was unveiled to be one of the participants. With a most recent closing price of C$0.19, participants in the C$0.10 financing are already in green territory while the warrants are also already in the money. These 10 million 12 cent warrants (C$1.2M in cash proceeds upon exercise) as well as the 5.6M warrants at C$0.08 (C$450,000 in cash proceeds upon exercise) issued in the April placement could mean Firefox won’t have to tap the equity markets in the next 12 months as we can reasonably expect a chunk of the warrants to be exercised. Additionally, CEO Carl Löfberg is a cautious spender and every dollar goes a long way at Firefox. This will allow the company to focus on unlocking the value of its Finnish gold projects in the Central Lapland Greenstone Belt.
Firefox also recently announced its summer exploration program with the majority of the work focusing on the Jeesio and Sarvilehto projects to get both projects drill-ready for this winter.
Disclosure: The author has a long position in Firefox Gold. Firefox is a sponsor of the website.