Flynn Gold’s $3M Capital Raise Hinges on Golden Ridge Exploration Success
Flynn Gold has announced a renounceable rights issue to raise up to $3 million, aiming to accelerate exploration at its promising Golden Ridge project in Tasmania.
- One-for-three renounceable rights issue priced at 2.3 cents per share
- Underwritten to $1.5 million by Mahe Capital with major shareholder sub-underwriting $500,000
- Free attaching options offered at 4 cents exercise price, expiring in 30 months
- Funds targeted to advance drilling at Golden Ridge and support working capital
- Rights trading begins 15 September 2025, closing 3 October 2025
Capital Raising to Fuel Exploration Ambitions
Flynn Gold Limited (ASX – FG1) has unveiled a strategic capital raising initiative through a one-for-three renounceable rights issue, designed to secure up to $3 million in fresh funds. The offer is priced attractively at 2.3 cents per share, representing an 18% discount to the last traded price and a 23% discount to the 90-day volume weighted average price. This move underscores Flynn Gold’s commitment to advancing its exploration activities, particularly at the Golden Ridge project in Tasmania.
Underwriting Support and Shareholder Participation
The rights issue is partially underwritten to $1.5 million by Mahe Capital Pty Ltd, with Flynn Gold’s major shareholder, Colin Bourke, agreeing to sub-underwrite $500,000 of this amount. Eligible shareholders in Australia and New Zealand will be entitled to participate, receiving one free attaching option for every two new shares subscribed. These options carry an exercise price of 4 cents and a 30-month term, with the company intending to list them on the ASX, providing additional value and potential upside for investors.
Strategic Focus on Golden Ridge
Flynn Gold’s Managing Director and CEO, Neil Marston, highlighted the progress made over the past year at Golden Ridge, referencing the November 2024 announcement of an Exploration Target. The project has since revealed multiple new gold prospects, expanding the scope and scale of potential drilling targets. The funds raised through this rights issue will primarily support further drilling campaigns aimed at advancing these discoveries, with the goal of delivering tangible value to shareholders.
Timetable and Trading Details
The rights issue opens for trading on 15 September 2025 and will close on 3 October 2025, unless extended. Shareholders will have the opportunity to trade their rights and apply for additional shares beyond their entitlement. New shares issued will rank equally with existing shares, and the company will seek ASX quotation for both the new shares and options. This capital raising is a pivotal step in Flynn Gold’s exploration journey, reinforcing its financial position to capitalize on promising mineral prospects.
Broader Portfolio and Growth Prospects
Beyond Golden Ridge, Flynn Gold maintains a diverse portfolio of tenements across Tasmania and Western Australia, including the Henty zinc-lead-silver project and the Firetower gold and battery metals project. The company’s strategic focus on high-potential exploration assets positions it well to leverage future discoveries, with this rights issue providing the necessary capital to sustain momentum.
Bottom Line?
Flynn Gold’s rights issue sets the stage for intensified exploration, but market response and drilling outcomes will be key to watch.
Questions in the middle?
- Will the rights issue achieve full subscription beyond the underwritten amount?
- How will the market value the attaching options given the exercise price and term?
- What are the expected timelines and milestones for drilling results at Golden Ridge?
