Flagship Minerals Limited (ASX:FLG), an ASX-listed resources company primarily focused on exploration and development of mineral projects, has announced the execution of a binding Sale and Purchase Agreement for the divestment of its RK Lithium Project in southern Thailand. The transaction, valued at US$4 million in cash, approximately A$5.8 million, marks a significant step in the company’s strategic transition to become an exclusive gold and copper explorer and developer. The move is designed to streamline Flagship’s portfolio and direct resources towards its core assets.
The binding agreement facilitates the sale of Flagship’s 100% owned RK Lithium Project to a Thai-based syndicate, led by privately held Pendulum Auto Co., Ltd. Under the terms, around 50% of the cash consideration is expected to be received this week, with the remaining balance slated for mid-July 2026. The RK Lithium Project comprises the RK Lithium and BT Lithium prospects, held by Flagship’s subsidiary Siam Industrial Metal Co. Ltd, and the KT Lithium prospect, held by Pan Asia 2 Metals (Thailand) Co. Ltd. Flagship has also committed to assisting the purchaser with the re-application for exploration licenses covering the RK and BT lithium prospects by March 2027, a process described as standard and already underway.
Flagship Minerals’ Managing Director, Paul Lock, highlighted that the divestment significantly boosts Flagship’s cash reserves. This capital injection will enable the company to concentrate its efforts on progressing its 2.2 million ounce Isidora Gold Project in Chile towards feasibility. Furthermore, resources will be allocated to the preparation of the Whipsaw Copper Project in Canada for a potential spin-out via an ASX listing, contingent on shareholder and regulatory approvals. The company is also in advanced discussions for the sale of its 100% owned Khao Soon Tungsten Project, which, upon completion, would finalise Flagship’s transition to a pure-play gold and copper focus.
