Partially Underwritten Renounceable Rights Issue to Raise up to $2.5 Million

Flynn Gold Limited (ASX: FG1, “Flynn” or “the Company”) is pleased to announce that it is undertaking a one-for-two renounceable rights issue (“Rights Issue”) at 3 cents per share to raise up to approximately $2.5 million (before costs). 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 Company will apply for the quotation of the new options on the ASX.

Highlights

• One-for-two Renounceable Rights Issue to raise up to $2.5 million, partially underwritten to $750,000
• Issue attractively priced at 3 cents per share
• Discount of 30% to the calculated ex entitlement price
• With every two New Shares, shareholders receive one free attaching New Option
• New Options will have Exercise Price of 7.5 cents, term of two and a half years and are proposed to be listed
• Shareholders can trade their rights and apply for additional shares and options
• Rights to start trading from 12 April 2024
• Funds to be used primarily to advance the Company’s Trafalgar gold discovery in Northeast TasmaniaFor further information or to post questions go to the Flynn Gold Investor Hub at https://investorhub.flynngold.com.au/link/7PRJoP

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 will close on 30 April 2024 (unless extended), and eligible shareholders can apply for shortfall in excess of their entitlement. Shareholders can also trade their rights from 12 April 2024.

The Rights Issue is partially underwritten to $750,000 by Lead Manager and Underwriter Mahe Capital Pty Ltd (ACN 634 087 684) (AFSL 517246). Directors may participate in the Rights Issue to the extent of their entitlement.

Managing Director and CEO, Neil Marston commented,

“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. We are now ready to take the next step …”

This fundraising is a major step forward in the value creation journey for the Company and we look forward to continued shareholder support as we advance our exciting gold projects in northeast Tasmania. Funds will be applied primarily towards additional drilling at our Golden Ridge Project, with the aim of advancing our recent gold discoveries to the next level and delivering value for shareholders.”

Funds raised under the Rights Issue will be applied to exploration activities at the Company’s projects in Tasmania and Western Australia and to working capital requirements including meeting the costs of the Offers.

All New Shares issued will rank equally with existing shares on issue and the Company will apply for quotation of the New Shares and Options.

A prospectus in relation to the Rights Issue was lodged with ASIC on 4 April 2024 and, together with a personalised entitlement acceptance form, will be sent to eligible shareholders shortly after the Record Date.

Eligible shareholders should consider the prospectus in deciding whether to acquire securities under the Rights Issue and will need to follow the instructions on the entitlement and acceptance form that will accompany the prospectus.

Click here for the full ASX Release

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