Flynn Gold Limited (ASX: FG1), a mineral exploration company focused on gold and lithium projects in Tasmania and Western Australia, has announced a renounceable pro-rata rights issue to raise up to approximately $3 million before costs. The offer is available to eligible shareholders with a registered address in Australia or New Zealand as of the record date. The company’s primary focus is on exploring and developing high-quality gold deposits, particularly in the emerging gold province of northeast Tasmania. Flynn Gold is also actively exploring for lithium in Western Australia.
The rights issue offers one new share for every three existing shares held, at an issue price of $0.023 (2.3 cents) per new share. Every two new shares will be accompanied by one free-attaching option, exercisable at $0.04 (4 cents) and expiring 30 months from the initial issue date. Mahe Capital Pty Ltd is partially underwriting the rights issue for $1.5 million before costs. The offer also includes the potential issue of new options and shares to the underwriter as part of their fees.
The funds raised from the rights issue are intended to support ongoing drilling activities at the Golden Ridge project, as well as drilling at the Mangana and Henty projects in Tasmania. These funds will also cover other Tasmanian project costs, general working capital, and the expenses associated with the offers. The company believes this capital raising will enable it to advance its exploration efforts and deliver value to shareholders.
Eligible shareholders are encouraged to read the prospectus carefully before making a decision to participate in the rights issue. The offer closes at 5:00 pm (Melbourne time) on Friday, 3 October 2025, and the securities offered are considered highly speculative.
