Firefinch Ltd (ASX: FFX) shares won’t be going anywhere on Thursday, after entering a trading halt. The Firefinch share price closed Wednesday’s session 2.17% lower at 45 cents.
Let’s take a look at the company’s latest update.
What’s the trading halt for?
Firefinch shares were halted before today’s market open, pending an announcement regarding a capital raising.
The company expects the trading halt to last until Monday 28 June, or when the capital raising announcement is released.
What does Firefinch do?
Firefinch is both a gold producer and lithium developer based in Mali.
The company has an 80% interest in the Morila Gold Mine, which has produced 7.5 million ounces of gold since 2000.
Firefinch aims to increase the project’s gold production via open-pit mining from Morila’s main large pit, satellite pits and new discoveries.
In terms of lithium exploration, the company says its Goulamina lithium project is one of the world’s largest undeveloped deposits, with the potential to be one of the lowest cost producers.
All permits are in place, with Firefinch’s definitive feasibility study citing a global resource of 109 million tonnes of lithium oxide at 1.45% Li2O.
Firefinch shares jump on Ganfeng joint venture
The Firefinch share price jumped 17% to 53.5 cents during intraday trading last Wednesday, after the company announced a joint venture with world-leading lithium producer, Ganfeng.
The 50:50 incorporated joint venture will see Ganfeng invest up to US$194 million to fast track Goulamina’s development.
Firefinch share price lifts 150% in 2021
The Firefinch share price has gone from strength-to-strength in 2021, likely supported by the company’s highly prospective lithium project.
2021 has also been a great year for other ASX-listed lithium developers. Industry heavyweight names such as Pilbara Minerals Ltd (ASX: PLS) and Galaxy Resources Ltd (ASX: GXY) have surged a respective 80% and 60% year to date.
Explorers have also received a fair share of love, with Piedmont Lithium Inc (ASX: PLL) and Galan Lithium Ltd (ASX: GLN) running 164% and 96% respectively, year to date.
The post Why the Firefinch (ASX:FFX) share price is halted today appeared first on The Motley Fool Australia.
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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Piedmont Lithium Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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