Fireweed upsizes offering to $31m for critical metals in northern Canada
Fireweed Metals (TSXV: FWZ; OTCQX: FWEDF) has closed its oversized private placement for gross revenues of C$43 million ($31.4m), a 33% increase from the C$30 million the company originally offered.
The offering consisted of three parts. The first part consisted of approximately 13.0 million common shares are a price of $1.10 per share. The second part consisted of 909,090 flow-through shares at a price of $1.55 each. The third part consisted of about 15.8 million charity flow-through shares at a price of $1.73 per share.
The net amounts raised by both types of flow-through shares will be used for exploration expenses in northern Canada.
Fireweed owns 100% of the Macpass zinc, the Mactung tungsten, and the Gayna zinc properties in Yukon and Northwest Territories.
The Macpass zinc-lead-silver project may be one of the largest undeveloped zinc resources in the world. It is located about 200 km from Ross River, Yukon, near the Northwest Territories border on the traditional territories of the Kaska Dena Nation and the First Nation of Na-cho Nyäk Dun.
The Tom and Jason deposits at Macpass contain 11.2 million indicated tonnes grading 6.59% zinc, 2.48% lead, and 21.33 g/t silver (9.61% zinc equivalent). The inferred resource is 39.5 million tonnes at 5.84% zinc, 3.14% lead, and 3.15 g/t silver (10% zinc equivalent).
The Mactung property is adjacent to the Macpass to the northeast and straddles the Yukon-NWT border. Fireweed purchased the property from the NWT government in February 2023 for an initial payment of C$5 million plus additional payments totalling C$10 million due upon certain production decisions. It is located within the traditional territories of the Kaska Dena and First Nation of Na-Cho Nyäk Dun, and the Sahtú settlement area.
Fireweed published an updated resource estimate later that year covering both underground and open pit potential at Mactung. The indicated resource is 41.5 million tonnes grading 0.73% tungsten trioxide (WO3). The inferred resource includes another 12.2 million tonnes at 0.59% WO3.
The Ganya property lies about 180 km north of the Macpass property in Yukon within the Sahtú settlement area, the Gwich’in settlement area and the asserted territory of the First Nation of Na-Cho Nyäk Dun. No resource estimate has yet been made for this project.