Flynn Gold, which holds several exploration projects across Tasmania and Western Australia, is looking to raise up to $2.5 million.
The explorer announced a one-for-two renounceable rights issue to the tune of three cents per share.
For every two new shares subscribed, eligible shareholders will receive one free attaching new option with an exercise price of 7.5 cents and expiring 30 months from the date of issue.
The rights issue is open to all eligible shareholders who have a registered address within Australia or New Zealand, and who hold shares on the record date.
The rights issue is partially underwritten to $750,000 by lead manager and underwriter Mahe Capital.
Flynn Gold chief executive officer Neil Marston said that funds will be primarily applied towards additional drilling at the company’s Golden Ridge project in north-east Tasmania.
Marston is hopeful that this will advance recent gold discoveries at Golden Ridge to the next level, and deliver value for shareholders.
“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 400m and open depth of 350m,” he said.
“We are now ready to take the next step.”
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