Flynn Gold boosts raise to $5m to speed up Tassie gold, silver, critical metals quest

• Flynn Gold increases equity raise from $3m to $5m at 2.3 cents per share
• Funds will be used to accelerate exploration across Tasmanian projects
• Company confident of investor support as metal prices soar

Special Report: Flynn Gold has upsized its $3m equity raise at 2.3c per share to $5m to accelerate exploration across its Tasmanian portfolio of gold, silver and critical metals projects.

The company has 10 tenements in northeast Tasmania that are highly prospective for gold along with tin/tungsten as well as the Henty silver-lead-zinc project on Tasmania’s mineral-rich west coast and the Firetower gold and critical metals project in the state’s north.

Flynn Gold (ASX:FG1) closed a rights issue raising $3m with support from existing shareholders and new investors.

To accommodate significant demand from new domestic and international institutional investors, the company undertook an additional $2m placement.

The landmark raising means the company is now well funded to accelerate exploration and drilling across the Apple Isle.

Funds will be directed towards:

• Mobilising a second drill rig to test further targets at the flagship Golden Ridge project, subject to assay results from recent drilling;
• Drilling beneath the historical high-grade Silver King mine (Henty North project) where recent rock grab sampling recorded up to 18.7oz/t silver, 36.5% lead, 4.0% zinc, 0.2% copper and 0.1% antimony;
• Drilling beneath the historical high-grade Golden Entrance gold mine at Mangana and at the Grieves Siding zinc-lead-silver prospect at Henty South; and
• Advancing the Firetower gold-cobalt-tungsten-copper project where a major re-sampling and assaying program of historical drill core for cobalt and tungsten is underway ahead of resource modelling and further drilling.

Previous drilling results for Flynn at Golden Ridge have included 12.3m @ 16.8g/t Au and 4.0m @ 23.7g/t Au.

Watch: FG1’s Neil Marston on the overabundance of demand

Exploring as metal prices soar

Flynn MD and CEO Neil Marston called the result “a tremendous outcome”, highlighting the company’s now excellent funding position to unlock the potential of its gold, silver and critical minerals projects at a time of record prices and significant investor interest in all of those metals.

“Following completion, Flynn will be in a strong balance sheet position, allowing us to execute multiple exploration programs across several high-priority targets, ensuring strong newsflow and significant exploration momentum through to the end of the year and beyond,” he said.

“We would like to thank our shareholders for the support they have shown during this Rights Issue, demonstrating their continued commitment to the company and enthusiasm for our future as we embark on an accelerated exploration program across our key gold, silver and critical metals projects in Tasmania.

“I also extend a warm welcome to those new domestic and international investors who have participated in our capital raise, at a time when the price of gold, silver, cobalt and tungsten are all soaring.

“We are well funded and fully permitted to continue drilling.”

This article was developed in collaboration with Flynn Gold, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.