Firetail Resources Raises $3M to Accelerate Skyline and Peru Exploration

Placement Details and Strategic Backing

Firetail Resources (ASX: FTL) has announced a successful placement raising A$3 million at an issue price of $0.06 per share. The placement was jointly led by Euroz Hartleys and 708 Capital, attracting strong support from institutional investors, high net worth individuals, and company directors. This capital injection is designed to accelerate Firetail’s exploration efforts at its flagship Skyline Copper Project in Newfoundland, Canada, and to sustain ongoing work at the Picha Project in Peru.

Focused Exploration at Skyline Project

The bulk of the proceeds will fund a high-impact exploration program at Skyline, where Firetail holds a 25km strike of highly prospective geology. The program includes advanced geophysical techniques such as 3D Induced Polarisation (IP) surveys targeting the recently identified Governor's Target, which extends over 1,200 meters and remains untested by drilling. Ground electromagnetic (EM) surveys will also be conducted over priority HeliEM targets, including the Veyron target, notable for its two separate EM plates each with a 500m strike length and depth extent of 700m.

Complementing these efforts will be a high-resolution magnetic survey across the entire ophiolite sequence, covering an 8.0km by 2.5km area. This survey aims to identify Cyprus-style Volcanogenic Massive Sulphide (VMS) deposits, a key focus given the project’s historic production of high-grade copper, zinc, and silver mineralisation. Initial diamond drilling is planned to test the Governor's and Veyron targets, potentially unlocking significant new mineral resources.

Advancing the Picha Project with BHP Xplor Support

In Peru, Firetail’s 70% owned Picha Project will benefit from the placement through continued geophysical and geochemical studies. The project is part of the BHP Xplor 2025 accelerator program, which provides equity-free funding of up to US$500,000 alongside technical support and industry mentorship. Planned activities include a property-wide gravity survey, targeted geochronology and geochemistry mapping, and alteration and soil sampling to refine and expand target areas.

Director Participation and Market Positioning

Notably, Firetail’s Managing Director Glenn Poole, along with directors Simon Lawson and Rob Jewson, have each committed to participate in the placement, subject to shareholder approval. This insider participation signals confidence in the company’s exploration strategy and growth prospects. The placement shares will rank equally with existing shares, issued at a slight discount to the recent volume-weighted average price, while the joint lead managers receive a combination of cash fees and unlisted options, aligning their interests with Firetail’s future performance.

Firetail’s exploration programs are well-timed to leverage recent geophysical breakthroughs and historic data, positioning the company to potentially unlock new high-grade copper-zinc-silver resources. The combination of advanced survey techniques and targeted drilling at Skyline, coupled with strategic support in Peru, underscores Firetail’s commitment to expanding its resource base and enhancing shareholder value.