Flynn Gold Ltd (ASX:FG1) has secured a binding option agreement to acquire two exploration licences at Parker Dome, just 50 kilometres north of the world-class Mount Holland Lithium Project in Western Australia.
Simultaneously, the company is raising A$2.4 million via a placement and share purchase plan (SPP) to further exploration activities at its West Australian and Tasmanian projects.
The newly acquired Parker Dome licences cover part of the Forrestania-Southern Cross greenstone belt which hosts several other lithium deposits and greatly complements Flynn’s existing lithium prospects in the region.
These licences are fully permitted, allowing for an immediate start of exploration and drilling at the newly acquired project.
Furthermore, four additional exploration licence applications were lodged over 20 square kilometres within seven kilometres of the Mt Holland Lithium project.
“Rapid start” to exploration
Flynn managing director and CEO Neil Marston said: “We are delighted to have secured an option to acquire two fully permitted exploration licences at Parker Dome, which complement our exciting lithium projects at Forrestania and Lake Johnston in Western Australia.
“Historical RAB drilling on these licences have recorded pegmatite in the bottom of multiple holes over an extensive area with thicknesses of up to 12 metres.
“Significantly, these drill holes were not assayed for lithium.
“Consequently, we intend making a rapid start to exploration activities to test these exciting drill-ready lithium targets.”
Location of Flynn’s Forrestania and Lake Johnston projects and new acquisitions
Capital raise
Flynn's tranche 1 equity raise comprises a $560,000 placement and a $600,000 SPP amounting to $1.2 million in total.
Meanwhile, tranche 2 will raise $1.24 million, available only to directors and existing major shareholders.
Shares are to be issued under the placement and SPP at $0.06 per share.
Managing director and CEO Neil Marston said: “It is pleasing to note the strong support Flynn Gold has received as part of this capital raising.
“I thank investors who participated in the placement and the joint lead managers for their support, and we look forward to providing all existing shareholders with the same opportunity via the share purchase plan.
“The funds raised will provide an acceleration of exploration activities at the WA Lithium Projects, including on two exploration licences under option at Parker Dome, situated 50 kilometres north of the world-class Mount Holland lithium project in WA, and further exploration activities at our Tasmanian gold and critical minerals projects.”
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