The new shares are being issued at a price of A58c each, versus recent trading in the stock around the 70c mark.

The fundraising comes as Firefinch continues its Morila gold project re-build and heads towards a demerger of its Goulamina lithium deposit.

Firefinch had cash of nearly $40 million at the start of the current quarter and said in October it was continuing to target debt funding of about US$50 million.

It is unclear whether the latter is still the case following the SPP result.

Meanwhile, Firefinch previously forecast 10,000-11,500 ounces of production in the December quarter, which if met would mean output of 45,000oz for calendar 2021, "providing a solid foundation for the ramp-up to production levels above 100,000 ounces in 2022".

So far as its lithium business is concerned, a major drill program is planned over the next two years, costing US$6 million and comprising almost 50km of drilling.

"The expected lift in reserves and resources is anticipated to rank Goulamina even higher among the largest global lithium projects and is expected to support a multi decade mine at a higher rate of production," Firefinch said in October.

Firefinch is demerging its lithium asset into new company Leo Lithium and selling half of Goulamina to Chinese company Ganfeng.

These initiatives are expected to be completed next year.