Why is the Firefinch share price shooting 10% higher today?

Firefinch shares are storming higher following a positive update…

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Key points

  • Firefinch shares are racing higher on Wednesday morning
  • This follows the release of an update on its Morila Gold Mine
  • The revival of “Morila the Gorilla" has been given a boost

The Firefinch Ltd (ASX: FFX) share price is having a strong start to the day.

In early trade, the gold and lithium explorer’s shares are up 10% to $1.00.

Why is the Firefinch share price charging higher?

Investors have been bidding the Firefinch share price higher today after the company provided an update on the Morila Gold Mine in Mali.

According to the release, the Government of Mali has agreed to extend the establishment convention for the Morila Gold Mine for three years until 16 May 2025. The terms and conditions of the convention remain unchanged to allow the ramp-up of activities and gold production at Morila.

The release notes that the purpose of the convention is to lay down the general, economic, legal, administrative, financial, tax, customs and social terms and conditions as they relate to the Societe des Mines de Morila, the owner and operator of Morila.

The convention sits alongside the mining exploitation licence for Morila, which is valid until 4 August 2029. In due course, Firefinch will seek the further renewal of the convention to align with the term of the mining exploitation licence.

‘Morila the Gorilla’

Firefinch highlights that the agreement demonstrates the Government of Mali’s support of its activities at Morila, as well as the company’s efforts in supporting local communities through the revival of “Morila the Gorilla.”

The company’s Managing Director, Dr Michael Anderson, commented:

It is fantastic to have a strong relationship with the Malian Government who have shown tremendous support of Firefinch as we ramp up our activities at Morila. Since taking over ownership of the mine, we have worked to deliver on our “Mali first” motto and are pleased to employ a workforce that is 97% Malian. We are very focused on continuing the production ramp-up and look forward to building on our good working relationship with the Malian Government in doing so.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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 Scott Phillips.

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