Flagship Minerals (ASX:FLG) has received $1 million from a placement to advance its Pantanillo Gold Project in northern Chile.
GBA Capital and Novus Capital were joint lead arrangers for this placement, and will be offered 6% of total funds received from new and existing shareholders.
The placement will issue 20.82 million shares at a price of $0.06, with 16.67 million shares to be issued using the company’s placement capacity.
This price offers a discount of 14% to the closing price on 27 May 2025, as well as a 19% discount to the 15-day volume weighted average price (VWAP).
Another 1.75 million shares will be issued on conversion of convertible notes, which will be issued using capacity rather than being ratified by shareholders.
The company will also offer the issue of one option for every two shares subscribed for an exercise price of $0.12 to expire two years from the date of issue, to a maximum of 10.41 million options.
Flagship will use this placement to expand its current qualifying foreign estimate of 47.4 million tonnes @ 0.69 grams per tonne gold for 1.05 million ounces gold to a JORC-compliant mineral resource that is consistent with major gold producers.
Managing Director Paul Lock says the aim of this raise was to focus on cash requirements with what appear to provide short term, low cost value to the Pantanilla Gold Project.
“Pantanillo is a large heap of leachable gold porphyry which is amenable to open cut mining and heap leach processing, providing Flagship a material gold inventory that leapfrogs the company several steps closer to feasibility and production,” Lock says.
Flagship, which has a market capitalisation of $14.25 million, will use remaining funds towards trenching and general fieldwork at its Rosario Copper Project, as well as potential metallurgical testwork.
Flagship Minerals is an exploration and development company, focused on producing copper and lithium to advance electrification and limit carbon output.
Write to Maddison Elliott at Mining.com.au
Images: Flagship Minerals
