The Firefinch Ltd (ASX: FFX) share price continues to remain in a trading halt today.
This follows a new market announcement from the gold miner and lithium developer during midday trade.
Currently, Firefinch shares remain frozen at 20 cents apiece.
Firefinch provides update on placement
According to the company's update, Firefinch advised it has decided not to complete a proposed $90 million placement.
A broader recapitalisation package was announced last week in which the company was seeking to acquire funds from relevant stakeholders.
Firefinch wanted to fund the Morila Stage 1 and 2 production plan as well as provide working capital through to 2024.
However, taking into account the recent downward movements in the gold price and unfavourable US: AUD currency movements, the company has put its plans on ice.
As a result, Firefinch and the joint lead managers are now considering alternative funding options.
This includes undertaking further assessment of its funding requirements to successfully execute its medium-term production plan.
In addition to the placement, there was going to be a $10 million non-underwritten share purchase plan (SPP).
The price was to be listed at the same offer as the placement at six cents apiece.
Although, it doesn't look like this will be going ahead anytime soon as the placement has been put aside.
Firefinch share price review
After tracking higher from the start of 2021 until June this year, Firefinch shares were up almost 500%.
But in late May/early June, the company's shares saw their value wiped off the ASX with the share hitting 20 cents apiece.
Based on today's price, Firefinch has a market capitalisation of approximately $236.25 million with 1.18 billion shares outstanding.
