Flagship Minerals Limited (ASX:FLG) has entered a binding agreement to divest its Reung Kiet Lithium Project in southern Thailand to a Thai-based syndicate for a total cash consideration of US$4 million, or approximately A$5.8 million. The transaction, led by privately held Pendulum Auto Co., Ltd, marks a significant step in the company’s efforts to streamline its portfolio. Flagship expects to receive half of the cash payment this week, with the remaining balance due by mid-July 2026.

The divestment is part of a broader corporate pivot, as the company transitions into a pure-play gold and copper explorer. By offloading non-core assets in Southeast Asia, the business aims to consolidate its financial and operational resources on two primary growth targets: the 2.2Moz Isidora Gold Project in Chile and the Whipsaw Copper Project in Canada.

"The divestment of the RK Lithium Project brings ~A$5.8m cash into Flagship. Enables Flagship to focus its resources on progressing its 2.2Moz Isidora Gold Project in Chile to feasibility and the preparation of the Whipsaw Copper Project in Canada for a potential spin-out via an ASX listing."

— Paul Lock, Managing Director

Managing Director Paul Lock confirmed the company is currently in high-level discussions regarding the potential sale of its remaining Southeast Asian asset, the Khao Soon Tungsten Project. Offloading this large-scale undeveloped site would effectively finalize the company's shift away from its legacy regional holdings.

With the capital infusion from the lithium sale, management is prioritizing the path to feasibility for the Isidora gold asset. Simultaneously, the company is evaluating a potential spin-out of the Whipsaw copper deposit into a dedicated, ASX-listed vehicle. Any such restructuring would be subject to standard regulatory and shareholder approvals.

The divestment of the lithium project requires Flagship to assist the purchaser in re-applying for exploration licenses covering the RK and BT prospects, a process that is already underway and must be completed by March 2027. Following the announcement, Flagship shares closed at A$0.18 on the ASX. The company is now signaling a clearer path forward for investors, moving away from its diversified international roots to concentrate exclusively on its core copper and gold development pipeline. By narrowing its geographical and commodity focus, the company hopes to accelerate the maturation of its two most advanced prospects while bolstering its balance sheet through the ongoing disposal of secondary assets.

Read the full announcement: Flagship sells RK Lithium for A$5.8 million cash