FLAGSHIP MINERALS Ltd (ASX:FLG) is raising A$2.75 million before costs through a 2-tranche strategic placement priced at A$0.25 per share.
The placement will see 11 million new fully paid ordinary shares issued, with support from three long-term strategic investors aligned with the company’s development strategy for the Isidora Gold Project in Chile.
Xinhai maintains support
The raising includes a A$500,000 commitment from existing strategic partner Xinhai, a global mining engineering group and specialist EPC provider.
A further A$2 million has been committed by a European strategic investor, while a third strategic investor has committed A$200,000.
Managing director Paul Lock said the backing represented further endorsement of the company’s 2.1-million-ounce Isidora Gold Project.
“We are pleased to secure support from three strategic long-term investors aligned with the company’s development strategy, a further endorsement of the 2.1Moz Isidora Gold Project,” Lock said.
“The continued support from Xinhai further strengthens our strategic relationship as we progress the project through its next phase of technical and development activities.”
Funds directed to studies and drilling
Funds from the placement will be used to advance feasibility and technical workstreams at Isidora.
Flagship plans to allocate A$500,000 to metallurgical testwork and heap leach processing studies, A$750,000 to drilling supporting metallurgical testwork and a subsequent mineral resource estimate update, A$750,000 to other project-related studies and A$750,000 to working capital.
The placement follows Flagship’s recently announced JORC 2012 mineral resource estimate for Isidora of 115.2 million tonnes at 0.56 g/t gold for 2.1 million ounces.
More than 90% of contained ounces are classified in the measured and indicated categories, providing a stronger platform for mine planning and feasibility work.
Placement structure
Of the A$2.75 million raising, A$2.25 million will come from professional and sophisticated investors through the issue of 9 million placement shares, while Xinhai’s A$500,000 commitment will involve the issue of 2 million shares.
The placement will proceed in 2 tranches, with 7 million shares to be issued under Flagship’s ASX Listing Rule 7.1A capacity. The balance will be subject to shareholder approval at a meeting to be called as soon as possible.
The A$0.25 issue price represents a 2% discount to Flagship’s last closing price of A$0.255 on May 19, 2026.