Flagship Minerals (ASX:FLG) has received the second $1.3 million strategic investment tranche from global engineering, procurement and construction group Shandong Xinhai Mining Technology & Equipment, following the completion of Xinhai’s due diligence at the Pantanillo Gold Project in Chile.
The milestone follows a mid-December site visit by a five-member Xinhai technical delegation and subsequent approval by Xinhai's investment committee, bringing Xinhai's total strategic allocation to $2.5 million.
As part of the partnership, Xinhai will nominate senior representative and major shareholder Zhongyi (John) Zhang to join Flagship’s board in January 2026, providing mineral processing, engineering and mine construction expertise aimed at accelerating feasibility, funding and development pathways.
Concurrently, Flagship has appointed Ambiental y Sectorial, an environmental consultancy in the Atacama region, to undertake the environmental impact assessment for Pantanillo, with baseline environmental studies now underway and formal EIA submission targeted for early 2027.
The company is also progressing the conversion of the existing 1.05 million ounce gold qualifying foreign estimate (NI 43-101) into a JORC (2012) compliant mineral resource estimate, with Chilean consultancy Bmining Desarrollo e Innovación para la Minera SpA completing core shed and site reviews during December and delivery expected within three to six weeks.
Managing Director Paul Lock said the funding and technical endorsement from Xinhai validated Pantanillo’s development potential, while the commencement of baseline environmental studies marked a critical step toward advancing the project through Chile's approvals framework and into the next phase of growth.