After making a “significant” new gold discovery at its Golden Ridge gold project in north-east Tasmania, Flynn Gold has launched a $6.1 million capital raise.
The company has received binding commitments for a $1.326 million share placement through the issue of 13.3 million shares at $0.10 per share.
To accompany this, Flynn Gold is seeking up to $4.8 million through a non-renounceable entitlement offer, which is also priced at $0.10 per share. Henslow has partially underwritten the entitlement offer by committing to $2.4 million.
Eligible shareholders will be able to subscribe to one new share for every two existing shares. Those who accept their entitlements in full may also apply for additional shares from any shortfall.
The entitlement offer will be made available to all eligible shareholders at 7pm on Thursday December 22.
The issue price of the placement and entitlement offer represents a 35.2 per cent discount to Flynn Gold’s 15-day volume-weighted average price (VWAP) of $0.154 on December 12.
Flynn Gold chief executive officer Neil Marston said he was pleased with the response to the capital raise.
“It is pleasing to note the strong support Flynn Gold has received as part of this offering,” he said. “I thank investors who have participated in the placement and the lead managers for their support, and we are pleased to provide all existing shareholders with the same opportunity.
“The funds raised will enable the company to accelerate drilling and exploration activities at its Trafalgar discovery, where high-grade gold intersections have been recently announced, and to advance exploration on its WA lithium-gold assets.”
Flynn Gold has intersected high-grade gold over an open strike length of 200m and to depths of up to 400m below surface at the Trafalgar discovery within its Golden Ridge project.
This included a 12.3m gold hit at 16.8 grams per tonne (g/t) gold from 108.7m (drill hole TFDD005), including 4.7m at 14.6g/t gold and 0.85m at 72g/t gold within that.