Flynn Gold Ltd (ASX:FG1) has opened a partially underwritten renounceable rights issue to raise up to $2.5 million in additional capital, which will go to advancing the Trafalgar gold discovery in Northeast Tasmania.
The one-for-two renounceable rights issue at 3 cents per share also includes options. For every two new shares subscribed, shareholders will receive one free attaching option with an exercise price of 7.5 cents, expiring 30 months from the date of issue.
Advancing Trafalgar at pace
“In very short time Flynn has advanced its Trafalgar discovery at its Golden Ridge Project in Tasmania from a one-hole intercept to a significant gold system with an open strike length of 400 metres and open depth of 350 metres.
“We are now ready to take the next step.
“This fundraising is a major step forward in the value creation journey for the company and we look forward to continued shareholder support as we advance our exciting gold projects in northeast Tasmania.
“Funds will be applied primarily towards additional drilling at our Golden Ridge Project, with the aim of advancing our recent gold discoveries to the next level and delivering value for shareholders.”
The offer, which is open to all eligible shareholders who have a registered address within Australia or New Zealand and who hold shares on the record date of April 9, 2024, represents a 30% discount to the calculated ex-entitlement price with rights to start trading from April 12, 2024.
This offer has been underwritten by lead manager and underwriter Mahe Capital Pty Ltd to the tune of $750,000.