Firefox Gold (FFOX.V) has encountered visible gold in the first hole of the recently started Phase 4 drill program on the Mustajarvi gold project in Finland. No assay results are available yet so we’ll have to wait for the lab results before getting overly excited. That being said, this is the first time visible gold has been detected in a drill core and encountering VG in the first hole of the 2021 drill program is interesting as that specific hole was a stepout hole drilled about 150 meters to the northeast of a high-grade gold interval encountered in 2020 (with 2 meters of 33.25 g/t gold as main result).
Reporting visible gold has rekindled the interest in Firefox Gold. The share price responded positively but even more important for an exploration stage company, Firefox was able to increase the size of a financing that was announced before the visible gold news hit the wires. The C$0.18 placement which was originally anticipated to be C$2M (with a lead order of C$0.6M from a subsidiary of Deutsche Rohstoff) has now been increased to C$3M with Deutsche Rohstoff increasing its participation to C$0.8M.
The terms of the financing remained unchanged. Firefox Gold is issuing units at C$0.18 with each unit consisting of a share and ½ warrant with a strike price of C$0.27 for a period of two years. This should allow Firefox to end its Phase 4 drill program at Mustajarvi with a healthy cash position.
Disclosure: The author has a small long position in Firefox Gold. Firefox is not a sponsor of the website, but has been a sponsor in the preceding twelve months. Please read our disclaimer.