Flynn Gold raises $3.7 million to fund further exploration in northeast Tasmania

Flynn Gold (ASX:FG1) has raised $3.7 million (before costs) through a placement and entitlement offer to help fund exploration activities at its wholly owned projects in northeast Tasmania. 

Flynn Gold says the capital raise was completed in February 2023 and comprised a placement in December 2022 which generated $1.3 million, as well as an entitlement offer which secured an additional $2.4 million in funds. 

The company notes during the capital raise it issued under 38 million fully paid ordinary shares to new and existing professional, and sophisticated investors at an issue price of $0.10 per share. Total shares issued comprised a total of 13.2 million shares being issued under the placement, while an additional 23.49 million were issued under the entitlement offer.  

It is reported no additional shortfall shares will be issued under the entitlement offer. 

Flynn Gold announces as at 28 February 2023, its cash at bank was about $5.5 million, with no debts other than normal trade creditors, positioning the company in a position to execute upcoming exploration programs.  

Commenting on the capital raise, Flynn Gold Chief Executive Officer (CEO) Neil Marston says: “Flynn Gold has successfully raised $3.7 million, via a partly underwritten entitlement offer and placement to institutional and sophisticated investors recently completed. 

The company is now fully funded for its upcoming exploration programs, with the high priority phase two drilling at the Trafalgar prospect within the Golden Ridge Project expected to commence within 2 weeks.

“The company is now fully funded for its upcoming exploration programs…”

A short diamond drilling program at the Portland Project is already underway to test the Popes prospect before the rig heads back to Trafalgar. 

Processing of core from phase one drilling at Trafalgar is progressing well with several batches of samples submitted to the laboratory, meaning further drilling results are still to come.” 

The company also reports the capital raise has been completed in conjunction with the start of a 1-2 drillhole diamond drilling (DD) program at the Popes prospect within the Portland Project in Tasmania. Drilling is expected to be completed later in March. 

In addition, phase two DD is also expected to begin at the Trafalgar prospect within the Golden Ridge Project within the next 2 weeks. This drilling program has been designed to comprise step-out extensional and infill drilling in order to follow-up on anomalous results of the recent scout reverse circulation (RC) drilling program. 

Assays from ‘high priority’ core samples gathered from phase one drilling completed at the Trafalgar prospect are yet to be received.

Flynn Gold is an ASX-listed mineral exploration company with a portfolio of exploration projects located in Tasmania and Western Australia. The company currently has 8 wholly owned tenements in Tasmania, as well as a portfolio of gold-lithium exploration assets in Western Australia’s Pilbara and Yilgarn regions.

Images: Flynn Gold Ltd & iStock
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.