Flynn Gold Limited (ASX: FG1), a mineral exploration company primarily focused on gold projects in Tasmania, has announced a renounceable pro-rata rights issue aimed at raising up to approximately $3.04 million before costs. The capital injection is intended to significantly bolster the company’s ongoing exploration and development initiatives across its portfolio.
Under the terms of the offer, eligible shareholders with a registered address in Australia or New Zealand, as recorded on 30 September 2026, will be entitled to subscribe for one (1) new fully paid ordinary share for every three (3) existing shares they hold. Each new share is priced at $0.015 (1.5 cents). Furthermore, subscribers will receive one (1) free-attaching option for every two (2) new shares issued, with these options having an exercise price of $0.03 (3 cents) and expiring 30 months from their initial issue. Mahe Capital Pty Ltd is partially underwriting the rights issue for $1.5 million, providing a minimum capital commitment. Notably, Flynn Gold’s Directors have expressed their intent to take up all or most of their entitlements, with key investor Lowell Resources Fund also committing to participate for $200,000.
The funds secured from this entitlement offer are strategically allocated. A significant portion will be directed towards resource definition drilling activities at the Golden Ridge project and the crucial completion of the maiden Mineral Resource estimate for the Firetower project. Remaining funds will support general working capital requirements and cover the costs associated with the offer. The application period for the rights issue is set to close at 5:00 pm (Melbourne time) on 16 October 2026, though this date remains subject to change. Investors are advised that the securities offered are considered highly speculative.
