Flagship Minerals Secures $1.25 million Through Capital Raise to Advance Gold Projects

Highlights:

• Flagship Minerals (ASX: FLG) raised A$1.25 million via equity placement, note conversion, and management participation.
• Funds will drive JORC conversion of 1.05Moz Au at Pantanillo and initiate exploration at Rosario.
• Placement priced at $0.06, with additional options issued and shareholder approvals pending.

Flagship Minerals Limited (ASX: FLG) has successfully raised AU$1.25 million (before costs) through a strategic share placement, receiving strong backing from both new and existing investors. The capital raise includes $1.0 million in fresh equity contributions, $144,449.40 from the conversion of March 2024 Convertible Notes, and a $105,000 commitment from senior management.

Funding Priorities: Pantanillo and Rosario Projects

The company intends to allocate the funds primarily to its Pantanillo Gold Project in Chile. The key goal is to convert the existing NI 43-101 foreign estimate of 47.4 million tonnes at 0.69g/t Au (1.05Moz Au) into a JORC 2012 and 2025-compliant Mineral Resource. Planned activities include core logging, sample re-assays, environmental studies, and drill preparation, with drilling expected to commence in the second half of 2025.

In parallel, Flagship will also conduct trenching and preliminary metallurgical work at its Rosario Copper Project in anticipation of future drilling campaigns.

Capital Strategy: Minimising Dilution at Low Valuation

The placement was priced at $0.06 per share—representing a 14% discount to the 27 May closing price and a 19% discount to the 15-day VWAP. At the time of writing, the company's market valuation remains below what management believes reflects the true value of its assets.

To mitigate dilution concerns, the company issued 20,824,156 shares and 10,412,078 attaching options (exercise price of $0.12, expiring in two years), subject to shareholder approval. Notably, management’s participation—via loan conversion—will also require shareholder clearance at the upcoming AGM.

Joint lead arrangers for the raise, GBA Capital Pty Ltd and Novus Capital Pty Ltd, will be compensated with a 6% fee on funds raised from investors, excluding the note conversions and management contributions.

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