Flynn Gold Limited (ASX: FG1), an Australian mineral exploration company with projects in Tasmania and Western Australia, has announced a one-for-three renounceable rights issue to raise up to $3 million before costs. The funds raised will primarily be used to advance the company’s drilling program at its Golden Ridge project and other projects in Tasmania, as well as to meet working capital requirements. The issue is priced at 2.3 cents per share, representing an 18% discount to the last traded price of 2.8 cents and a 23% discount to the 90-day VWAP of 3 cents.
Eligible shareholders will receive one free attaching new option for every two new shares subscribed. These new options will have an exercise price of 4 cents and will expire 30 months from the date of issue, with the company intending to list them on the ASX. The rights issue is open to eligible shareholders with a registered address in Australia or New Zealand who hold shares on the record date.
The rights issue is partially underwritten to $1.5 million by Mahe Capital, with Mr Colin Bourke, a major shareholder, agreeing to sub-underwrite $500,000 of this amount. Eligible shareholders can trade their rights starting 15 September 2025 and can apply for additional shares and options. The rights issue is scheduled to close on 3 October 2025.
According to Neil Marston, Managing Director and CEO of Flynn Gold, the company has made significant progress at its Golden Ridge Project in Tasmania, identifying new gold prospects that continue to grow in scale. He stated that the funds raised through this entitlement offer will be primarily directed towards additional drilling at Golden Ridge to advance these discoveries and deliver value for shareholders.
