Flynn Gold (ASX: FG1) reports it is conducting a capital raising up to $6.1 million in capital with Henslow appointed as lead manager and Taylor Collison acting as co-lead manager.
The company is aiming to raise $1.3 million via a placement followed by a non-renounceable entitlement offer, which is to be partially underwritten by Henslow to some $2.4 million to raise up to a further $4.8 million.
Flynn will use the equity to accelerate drilling and exploration activities at its Trafalgar discovery, where ‘high-grade’ gold intersections have been recently announced, and to advance exploration on its WA lithium-gold assets.
The funds raised will also be used for M&A opportunities and general working capital.
Henslow has received binding commitments to raise about $1.326 million capital
Henslow has received binding commitments to raise about $1.326 million capital through the issue of more than 13.26 million new fully paid ordinary shares in the company to new and existing sophisticated and professional investors.
The new shares will be issued as a single tranche at $0.10 per new share using Flynn’s existing placement capacity. The company is also undertaking a 1 for 2 non-renounceable entitlement offer to raise up to $4.8 million at the same issue price as the placement.
The entitlement offer is partially underwritten by Henslow to $2.4 million.
Flynn recently announced ‘high-grade’ gold mineralisation from the on-going drilling program at the Trafalgar discovery. Trafalgar is located within the Golden Ridge project where the company is exploring a gold mineralised corridor extending over an 8km long granodiorite-metasediment contact zone.
Drilling has intersected ‘high-grade’ gold over an open strike length of 200m and to depths of up to 400m from surface (open), confirming a significant new gold discovery at Trafalgar. The gold-bearing vein zones at Trafalgar remain open along strike and at depth, and funds raised will be applied to accelerate infill and extensional drilling.
Write to Adam Orlando at Mining.com.au
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