Flagship Minerals Sells RK Lithium Project for US$4 Million to Focus on Gold and Copper

Flagship Minerals Divests Lithium Asset for Immediate Cash Injection

Flagship Minerals Limited (ASX:FLG) has sealed a binding agreement to offload its 100% owned RK Lithium Project in southern Thailand to a Thai syndicate led by Pendulum Auto Co., Ltd, for US$4 million (approximately A$5.8 million). Half of this cash consideration is set to hit Flagship’s coffers immediately, with the remainder due by mid-July 2026. This transaction marks a significant step in Flagship’s strategic exit from lithium, allowing the company to sharpen its focus on gold and copper exploration and development.

Strategic Shift to Gold and Copper

Managing Director Paul Lock emphasised that the divestment will fuel Flagship’s efforts to advance its 2.2 million ounce Isidora Gold Project in Chile towards feasibility studies, while also preparing the Whipsaw Copper Project in Canada for a potential spin-out via an ASX listing. The Whipsaw asset, located in British Columbia near established infrastructure, holds a large-scale porphyry copper system with an exploration target ranging from 0.51 to 1.02 billion tonnes at copper equivalent grades between 0.2% and 0.4%. The company’s pivot aligns with a broader focus on precious and base metals, stepping away from battery minerals like lithium.

Khao Soon Tungsten Project Sale Underway

Flagship is also in advanced discussions for the sale of the Khao Soon Tungsten Project, one of Southeast Asia’s largest undeveloped tungsten deposits. While details remain fluid, the completion of these divestments will fully transition Flagship into a pure gold and copper explorer and developer. This streamlining could sharpen capital allocation and operational focus, potentially unlocking value through targeted project advancement and corporate structuring.

Transaction Details and Obligations

The RK Lithium Project sale includes lithium prospects RK, BT, and KT, held across Flagship’s Thai subsidiaries. The sale agreement includes standard warranties and representations typical for such transactions. Flagship has also committed to assisting the purchaser with re-applying for exploration licenses covering the RK and BT lithium prospects by March 2027, reflecting ongoing regulatory processes in Thailand.

Isidora Gold and Whipsaw Copper Projects as Growth Engines

The Isidora Gold Project in Chile boasts a substantial JORC-compliant resource of 2.1 million ounces of gold, with measured and indicated resources forming the bulk of this figure. Flagship has been actively progressing feasibility and metallurgical testwork on Isidora, backed by recent capital raisings to support these efforts. Meanwhile, the Whipsaw Copper Project offers a compelling exploration target with significant scale and proximity to Hudbay’s Copper Mountain operation, positioning it well for further development and potential market interest through a dedicated ASX listing.