Flagship Minerals Secures Full US$4 Million Payment for RK Lithium Project Sale, Advances Gold and Copper Focus

Completion of RK Lithium Project Sale Bolsters Flagship's Financial Position

Flagship Minerals has finalized receipt of the full US$4 million (~A$5.8 million) cash consideration from the sale of its RK Lithium Project. The transaction, completed with a Thai-based syndicate led by Pendulum Auto Co., Ltd, transferred 100% ownership of the southern Thailand lithium asset to the buyer. This capital infusion strengthens Flagship’s liquidity, enabling further investment across its development and exploration portfolio as it executes its updated strategic focus.

This divestment aligns with Flagship’s strategic pivot towards Gold and Copper exploration and development. By monetizing its Lithium asset, the company has removed exposure to non-core commodities and secured funds to accelerate priority projects. Managing Director Paul Lock highlighted that the cash proceeds enhance Flagship’s capacity to advance its flagship development assets.

Strategic Shift to Gold and Copper Exploration and Development

Flagship Minerals is actively transitioning from a diversified mineral explorer to a specialist Gold and Copper-focused developer. The sale of the RK Lithium Project marks a significant milestone in this portfolio realignment, with a subsequent planned divestment of the Khao Soon Tungsten Project expected to complete the shift. This strategic refocus concentrates capital, management, and operational resources on assets with the highest potential for shareholder value creation.

The company is engaged in discussions to sell the Khao Soon Tungsten Project, one of the largest tungsten exploration projects in Southeast Asia. Finalizing this sale will conclude Flagship’s exit from Lithium and Tungsten assets, allowing concentrated efforts on the Isidora Gold Project in Chile, which is progressing toward feasibility, and the Whipsaw Copper Project in Canada, under evaluation for a potential ASX spin-out.

Isidora Gold Project in Chile Hosts 2.1 Million Ounces of Gold Resource

The Isidora Gold Project, situated east of Copiapo in Chile’s Atacama region, is Flagship’s premier development asset. Spanning roughly 120 square kilometres and comprising two Exploitation Concessions plus 34 Exploration Concessions, the project’s May 2026 Mineral Resource Estimate totals 2.1 million ounces of gold at an average grade of 0.56 grams per tonne across measured, indicated, and inferred categories.

The resource includes 1,505 thousand ounces in the measured category grading 0.56 g/t Au, 399 thousand ounces indicated at 0.59 g/t Au, and 190 thousand ounces inferred at 0.60 g/t Au. Measured resources account for 71.9% of the total, with indicated and inferred comprising 19.1% and 9.1%, respectively. Cut-off grades applied were 0.16 g/t for oxide, 0.27 g/t for transitional, and 0.31 g/t for sulphide mineralisation. Flagship is prioritizing advancing Isidora toward feasibility, marking a key development phase.

Whipsaw Copper Project in Canada Features Extensive Porphyry Mineralisation

Located in British Columbia, approximately 160 kilometres east of Vancouver and 17 kilometres west of Hudbay’s Copper Mountain project, the Whipsaw Copper Project is Flagship’s secondary core asset post-transition. Covering about 66 square kilometres, the project benefits from a pro-mining environment with strong infrastructure. Historical drilling, geochemical, and geophysical data indicate a substantial Exploration Target extending 3.7 kilometres in strike and up to 1.2 kilometres wide, remaining open for expansion.

Reported in June 2026, the Whipsaw Exploration Target ranges from 0.51 to 1.02 billion tonnes grading 0.14% to 0.23% copper equivalent, including copper (0.14%-0.23%), molybdenum (86-147 ppm), silver (1-2 ppm), and gold (0.01-0.02 ppm). Flagship is considering a potential ASX spin-out of this asset into a dedicated listed entity, subject to shareholder and regulatory approvals, to unlock value and provide focused development.

Potential ASX Spin-Out of Whipsaw Copper Project Pending Approvals

Flagship is evaluating a spin-out of the Whipsaw Copper Project into a standalone ASX-listed company, separating it from Flagship’s Gold-centric operations. This transaction would require shareholder consent and ASX regulatory clearance. The spin-out would enable independent capital raising and management focus for Whipsaw, potentially enhancing shareholder value beyond what might be achievable within a diversified parent company.

If approved, this corporate restructuring would result in Flagship shareholders holding interests in two distinct listed entities: Flagship focusing on the Isidora Gold Project and related gold assets, and a new company dedicated to the Whipsaw Copper Project. No timeline has been provided for the evaluation or approvals process.

Asset Sale Proceeds Enhance Funding and Strategic Agility

The US$4 million cash received from the RK Lithium Project sale significantly boosts Flagship’s liquidity, supporting development activities and strategic flexibility. This capital arrives as the company accelerates feasibility work on the Isidora Gold Project, reducing reliance on capital markets or debt in the near term.

While Flagship has not disclosed its total cash reserves, operating costs, or detailed funding plans for Isidora’s feasibility study, this cash injection provides essential runway. The anticipated sale of the Khao Soon Tungsten Project is expected to further strengthen the company’s financial position, enabling focused pursuit of its Gold and Copper strategy without distractions from non-core Lithium and Tungsten assets.

Flagship Minerals Operates Across Chile, Canada, and Thailand

Flagship Minerals maintains operations in three key mining jurisdictions: Chile, Canada, and Thailand. Its headquarters are in Sydney, Australia, with regional offices in Santiago, Chile, and Singapore. The Isidora Gold Project in Chile’s Atacama region is the company’s most advanced asset, situated in a jurisdiction with established mining infrastructure and regulatory frameworks. The Whipsaw Copper Project in British Columbia benefits from proximity to major mining operations and transport infrastructure within a pro-mining regulatory environment.

The now-divested RK Lithium Project and the Khao Soon Tungsten Project, currently under sale discussions, are located in Southeast Asia where Flagship developed operational capabilities. The company’s geographic diversity spans the Americas, Asia-Pacific, and Oceania, but its strategic pivot toward Gold and Copper will concentrate future efforts on Chile and Canada once the Thailand divestments are finalized.

Transaction Details and Buyer Profile Confirm Completion

The RK Lithium Project was sold to a Thai-based syndicate led by privately held Pendulum Auto Co., Ltd, which acquired full ownership under a binding Sale and Purchase Agreement. The buyer’s profile as a private automotive company, rather than a traditional mining entity, suggests differing strategic motivations behind the acquisition. The transaction was completed as an all-cash payment, providing Flagship immediate liquidity without contingent or deferred payments.

Flagship announced the binding agreement on 25 June 2026 and confirmed receipt of full payment as of 21 July 2026. No details were disclosed regarding earn-out clauses or milestone payments. The straightforward cash completion offers certainty and allows Flagship to allocate proceeds toward its strategic priorities.

Outlook: Feasibility Progress and Asset Sales to Define Near-Term Strategy

Following receipt of the Lithium project proceeds, Flagship’s near-term priorities are focused on advancing the Isidora Gold Project to feasibility—a critical step toward potential development decisions. Concurrently, the company is managing negotiations for the Khao Soon Tungsten Project sale, which will finalize its portfolio shift to Gold and Copper assets. Timelines for the Tungsten sale and Isidora feasibility completion remain undisclosed.

Additionally, Flagship continues to assess the Whipsaw Copper Project for a potential ASX spin-out. No schedule has been provided for this evaluation or decision. Management has indicated that advancing Isidora’s feasibility, completing the Khao Soon Tungsten sale, and evaluating the Whipsaw spin-out constitute the core strategic agenda in the coming months, marking Flagship’s evolution into a pure-play Gold and Copper explorer and developer.