Flagship Minerals (ASX:FLG) has received a $1.25 million payment from Xinhai Mining Technology & Equipment as the second tranche of funding upon completion of due diligence at the Pantanillo Gold Project in northern Chile.
The payment was deployed in cash and share allocation, with Xinhai to allocate members to Flagship’s board in January 2026.
As the owner of the project, Flagship has appointed Ambiental Y Sectorial as the environmental consulting firm to conduct baseline studies with an environmental impact assessment. The assessment is scheduled to be complete and submitted in early 2027.
Flagship Managing Director Paul Lock says the company is pleased to move forward in the partnership following Xinhai’s on-site due diligence in mid-December and board-level review.
“Their support affirms the scale and potential of Pantanillo as a future gold development,” Lock says.
“Baseline environmental studies are now underway with Ambiental Y Sectorial, marking a key milestone as we position the project for the next phase of growth under Chile’s streamlined approvals framework.
“Joining Flagship’s board will be a key Xinhai representative and major shareholder, Mr John Zhang, who brings broad intellectual rigor and a wealth of hands-on business development expertise. I am personally looking forward to working with Mr Zhang.
“Overall, Flagship is making strong progress at Pantanillo and momentum is gaining.”
The company is currently converting the existing resource estimate of 1.05 million ounces gold to be in accordance with the JORC Code 2012. The conversion is due within the next three to six weeks.
Write to Maddison Elliott at Mining.com.au
Images: Flagship Minerals
