Firefly (the ‘Company’), although highly speculative, has the potential to quickly create shareholder wealth given the potential economic upside of the mining tenements acquired, using the proceeds of a recent $2.3M equity raising.

These funds will be applied principally to the Yalgoo Gold Project (the ‘Project’) and general working capital. The funds are likely to be deployed very soon as drilling is likely to commence once rigs become available, after which the Company’s drilling program will be immediately announced to the market. Directors, by moving quickly and keeping the market well informed of their plans, are displaying a strong shareholder return bias in their actions and this will be well received by the market.       

The $2.3M raising includes a $1.15M strategic share placement to the Yalgoo Project vendor, Aurum Minerals Pty Ltd. This vendor equity adds to the appeal of the transaction. The Company now has 257,039,532 shares on issue.

The initial exploration activity at Yalgoo will focus on the advanced Melville gold deposit, which starts from surface and remains open in all directions, as well as a series of under-drilled gold prospects ‘along-strike’ from Melville.  This activity will provide the foundation for a new regional development hub that could create significant value for the Company’s shareholders.

 The raising is fully underwritten by Argonaut, with a portion of the raising sub-underwritten by two directors of Firefly, (John Hutton and Geoffrey Jones), for up to $200,000 collectively. This is another positive signal to shareholders.

The Yalgoo Gold Project comprises of tenements, located within the Yalgoo Greenstone Belt, Western Australia.

In consideration for the acquisition, Firefly has agreed to issue the following securities to the vendors of the Project:

833,333 shares, at a deemed issue price of $0.03 per share following execution of the Terms Sheet and 97,000,000 shares to the vendors, at a deemed issue price of $0.03 per share, upon the satisfaction of the conditions precedent set out in the Terms Sheet; and,

22,999,998 performance rights, which are to be issued in three separate tranches of 7,666,666 performance rights and will vest upon the completion of milestones in relation to the Project being achieved over a five-year period.  

The raising also includes 1,666,667 shares to be issued to Mr Michael Edwards, a Director, at an issue price of $0.03 each, to raise approximately $150,000.

Firefly Managing Director Simon Lawson said that Firefly shareholders strongly endorsed acquisition of the Yalgoo Gold Project and the approval of the Project’s drilling ‘Programme of Works’ (‘POWs’) enables the Company to quickly hit the ground and start drilling immediately.

“Our first priority is to drill and establish a JORC 2012-compliant Mineral Resource over the advanced Melville Gold Prospect and we have a clear path to make this happen” he said.

“In addition to establishing a JORC 2012 resource inventory at Melville and across Yalgoo, we also intend to explore and target new discoveries across the Yalgoo Gold Project. Importantly, we have prioritised several completely untested and exciting prospects that became evident in our evaluation of historical data during our due diligence process. These targets are mostly historical workings dating from the first half of last century which have been visually assessed while walking the ground over a number of site orientations visits”, Simon Lawson said.

Further information on these targets will be released by the Company in coming weeks, and subsequent drill programs will be designed and covered by additional POW applications.

The Company has also commissioned re-processing of existing geophysical information across the Yalgoo Gold Project using modern techniques developed in the 15 years since the last major exploration programs occurred over the project area.

This re-processing has already produced some positive results, supporting the initial targeting and the Company appears confident that the combined finalised geophysical/targeting results will be well received by the market, when released.

Firefly is showing initiative by adopting a proactive approach to initial ground-truthing, as part of a systematic and scientifically driven exploration strategy, aimed at unlocking the full potential of the Yalgoo Gold Project.

The Company has also fully engaged with local and departmental stakeholders and has developed a strong multi-level exploration and resource development strategy going forward. These initiatives should provide for a sustained news-flow and value-generation across the relatively under-explored Yalgoo Gold Project.

Shareholders may not have to wait long to reap the benefits of this recent project acquisition judging by how quickly the motivated directors of the company are moving to commence drilling and to measure the extent of the resource available at Yalgoo.

Kerry Daly