Flynn Gold Ltd (ASX:FG1) has raised $3.7 million to be used for upcoming drilling programs in northeast Tasmania. Following the raise, the company’s cash at bank at February 28 was approximately $5.5 million, with no debts.
FG1 is now fully funded for the diamond drilling program underway at Popes Prospect within its Portland Project, as well as Phase 2 diamond drilling at the Trafalgar Prospect within the Golden Ridge Project.
The latter is expected to start within two weeks, with FGI also expecting high-priority core samples from Phase 1 drilling at Trafalgar during this time.
“The company is now fully funded for its upcoming exploration programs, with the high-priority Phase 2 drilling at the Trafalgar Prospect within the Golden Ridge Project expected to commence within two weeks,” FG1 CEO Neil Marston said.
“A short diamond drilling program at the Portland Project is already underway to test the Popes Prospect before the rig heads back to Trafalgar.
“Processing of core from Phase 1 drilling at Trafalgar is progressing well with several batches of samples submitted to the laboratory, meaning further drilling results are still to come.”
Location of Flynn Gold tenements in NE Tasmania.
Details of the raise
On December 23, 2022, FG1 issued a total of 13,262,487 fully paid ordinary shares via a placement to new and existing professional, and sophisticated investors at an issue price of $0.10 per share, raising $1.326 million, before costs.
The underwritten entitlement offer, results of which were announced on February 7, 2023, saw the company issue 24.55 million new shares at $0.10 per share, raising $2.455 million before costs.
The total amount raised and the lack of debt puts FG1 in a strong position to execute its upcoming exploration programs.
What to expect moving forward
FG1 will kick off its Phase 2 drill program at Trafalgar in the coming weeks.
Drilling will comprise step-out extensional and infill drilling, with at least one rig returning to site in the expected timeframe.
FG1 is looking to put at least two drill rigs on site to fast-track drill testing. The company is also planning to drill at the nearby Link Zone to follow up on the anomalous results of the recent scout RC drilling program.
Phase 1 at Trafalgar consisted of seven diamond drill holes for a total of 3,204.5 metres. Selected samples from drill holes TFDD004, TFDD005B, TFDD006 and TFDD008 are with the laboratory for analysis, with additional core from TFDD005, TFDD007 and TFDD008 to be submitted.
Results will be released once they are back from the lab.
Meanwhile, FG1 has mobilised a drill rig to the Popes Prospect to undertake a 1-2 hole drilling program to be completed later this month.
The company has eight 100%-owned tenements in northeast Tasmania and has established a portfolio of gold-lithium exploration assets in the Pilbara and Yilgarn regions of Western Australia.
FG1 also has prospective tin projects within its northeast Tasmania gold project, as well as two zinc-silver tenements on Tasmania’s mineral-rich west coast.