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Flynn Gold Raising $3m to Accelerate Multiple Tasmanian Exploration Programs

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By Colin Hay - 
Flynn Gold ASX FG1 Raising Accelerate Multiple Exploration Programs Tasmania
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Flynn Gold (ASX: FG1) is seeking to raise $3 million to support its drilling ambitions in Tasmania, with independent broking firm Mahe Capital underwriting half of the issue and major shareholder Colin Bourke agreeing to sub-underwrite $500,000 of that amount.

The company will issue the new equity at $0.023 per share, representing a discount of 18% to the last price of $0.028 and 23% to the 90-day volume-weighted average price of $0.03.

Eligible shareholders will receive one free attaching new option for every two new shares taken, with an exercise price of $0.04 and a term of 30 months from the date of issue.

Fast-Tracked Exploration

Flynn will apply the funds to fast-track exploration at Golden Ridge, where earlier this month it reported the discovery of the new G3 gold vein at the Grenadier prospect, and is also looking to trench an untested area between the G1/G2 veins and the new G3 vein.

Flynn believes that G3, and a possible fourth vein, have the potential to significantly increase the size of the Grenadier system.

“This last 12 months has seen the company making great progress at Golden Ridge, following the announcement of an Exploration Target in November 2024,” chief executive officer Neil Marston said.

“New gold prospects have been identified this year and continue to grow in scale, presenting us with multiple targets to drill test, with the funds raised through this entitlement offer applied primarily toward […] advancing these recent gold discoveries and delivering value for shareholders.”

Government Backing

The company has also received government backing for the next stage of exploration at two of its other prospective Tasmanian projects.

The state government’s Exploration Drilling Grant Initiative (EDGI) has awarded Flynn $130,000 in grants, which will allow it to undertake new work at the historical Mangana goldfield and the Henty South project.

The EDGI funding will support Flynn as it drill tests targets at its Grieves Siding zinc-lead-silver project at Henty South, as well as deeper potential at Mangana’s Golden Entrance mine.