Flagship Minerals Limited (ASX: FLG) advises that it will not proceed with the Option Agreements associated with its early-stage Tama Atacama Lithium Project (TALP) in Chile.
The decision follows a strategic review of the Company’s lithium holdings, in light of current market conditions and portfolio priorities. TALP comprises two Option Agreements and a Memorandum of Understanding, covering approximately 1,200km² of prospective lithium brine terrain in northern Chile. Exploration to date has been limited to surface geochemical sampling.
With the global lithium market in oversupply, and large, feasibility-stage projects well-positioned to meet future demand, Flagship sees limited short- to medium-term value in continuing to pursue these tenements.
Importantly, TALP demonstrates Flagship’s disciplined approach to capital management. By favouring back-ended option agreements over upfront acquisition deals, the Company retained upside exposure to lithium while preserving the ability to exit cleanly as market conditions softened. This approach has helped maintain a healthy capital structure, despite challenging conditions across the junior exploration sector over the past 18–24 months.
Resources previously allocated to TALP, including annual option and concession fees, will now be redirected to the Company’s Pantanillo Gold Project in Chile. Pantanillo hosts a current foreign estimate of 47.4Mt @ 0.69g/t Au for 1.05Moz Au (NI 43-101, 99.4% Measured and Indicated), and Flagship is now focused on converting and expanding this into a JORC-compliant Mineral Resource Estimate.
The Company continues to review its lithium holdings in Southeast Asia, with an update expected by 30 September. There are no pending licence renewals or mandatory exploration expenditure commitments associated with these tenements.
Contact details:
Financial & Corporate Relations (FCR):
Robert Williams / Maggie Au
[email protected] / [email protected]
+61 (0) 477 666 255 / +61 (0) 461 410 368