Highlights

• Flagship Minerals has entered into an option agreement to acquire a 100% interest in the Fortuna Valle Copper-Gold Project, located in Chile's prolific Coquimbo Region.

• The project covers approximately 265 square kilometres and hosts multiple copper-gold prospects with historical drilling, geochemical sampling, and geophysical data across five priority zones.

• Scout drilling previously intersected copper-gold mineralisation in several zones, confirming the presence of an intrusive-related copper-gold system with grades comparable to typical alkalic porphyry systems.

• The Acquisition adds copper exposure to Flagship's portfolio, complementing the 2.1 million ounce Isidora Gold Project in Chile and the Whipsaw Copper Project in Canada.

Flagship Minerals Limited (ASX:FLG), an ASX-listed minerals exploration company trading under the ticker FLG, announced on 12 November 2026 that it had agreed to acquire a 100% interest in the Fortuna Valle Copper-Gold Project in northern Chile via an option agreement. The project is located in the Coquimbo Region, within the Coastal Cordillera metallogenic belt — an established and productive Mining district that hosts numerous significant copper, gold, and iron deposits, including several operating mines managed by major international producers. Flagship's managing director described the acquisition as adding copper exposure to the company's portfolio on commercially attractive terms, consistent with the company's stated strategy of building a diversified portfolio of quality gold and copper Assets situated in jurisdictions with established mining regulatory frameworks, skilled workforces, and adequate infrastructure access. The Coquimbo Region is well-served by transport networks, power infrastructure, and mining services, all of which are relevant to the feasibility of exploration and eventual development activities.

Location and Scale of the Fortuna Valle Project

Fortuna Valle covers approximately 265 square kilometres and encompasses multiple named prospect areas, including Cerro Blanco, Las Hermanas, Chinchillón, San Miguel, and Perseverencia, each representing a distinct exploration target within the broader project area. The project has been the subject of exploration activity by multiple parties over several decades, generating a substantial body of technical data including geological mapping, geochemical sampling, trenching, ground magnetics surveys, and diamond drilling programs. This cumulative historical work has identified a large-scale copper-gold hydrothermal system associated with intrusive rocks, particularly Late Cretaceous monzonite porphyry stocks, with mineralisation recognised across multiple prospect areas in both vein-hosted and porphyry-style settings. The most recent systematic drilling program, completed by Great Southern Copper between 2018 and 2022, intersected copper-gold mineralisation at several of the priority target areas. Scout drilling at the San Miguel zone returned intersections of copper-gold mineralisation over meaningful downhole widths, confirming the presence of an intrusive-related copper-gold system. Despite this historical activity, Flagship's management characterised the project as significantly underexplored relative to the scale of the concession footprint, suggesting substantial opportunity for systematic modern exploration to test the broader potential of the mineralised system.

Historical Exploration and Mineralisation Evidence

The commercial structure of the acquisition provides Flagship with a measured and flexible path toward full ownership. Under the terms of the option agreement, Flagship has secured management control of the project through a wholly owned Chilean subsidiary, with no minimum spending or activity requirements imposed by the vendor. The company made an initial option payment at signing, with further payments required in 2027 and a final exercise payment to acquire full ownership in 2028. The structure allows Flagship to advance the project at its own pace and in line with its assessment of the technical merits, without committing to minimum exploration expenditure that could divert Capital from other portfolio priorities. A one percent net smelter Royalty is included in the agreement, with a buyback option available to Flagship at a pre-agreed price.

Transaction Terms and Planned Work Programme

Flagship's initial work programme at Fortuna Valle will focus on compiling and validating all historical exploration data, undertaking additional mapping and surface geochemical sampling across the full project area, reviewing geophysical datasets and planning potential survey expansions, and generating and prioritising drill targets for a future drilling program. This methodical approach to exploration programme design reflects the company's intent to maximise the value derived from the existing data set before committing to new drilling capital. The acquisition adds to Flagship's established Chile presence through the Isidora Gold Project — host to a significant gold mineral resource — and broadens the company's Commodity exposure as it simultaneously evaluates strategic Options for its Whipsaw Copper Project in British Columbia, Canada. Management's emphasis on the long-term Demand case for copper, underpinned by the ongoing transition to electrification across global energy systems, underlines the rationale for increasing the company's exposure to this metal in what it views as a structurally favourable Supply environment. The addition of Fortuna Valle also reflects Flagship's broader conviction about the Investment case for copper in the current commodity environment. Supply constraints arising from declining global ore grades, a relatively thin pipeline of high-quality development projects in well-regarded jurisdictions, and long lead times for new mine permitting and construction are structural features of the copper market that management believes support sustained demand for quality exploration opportunities. For a company building a diversified portfolio of metal assets across multiple jurisdictions, the ability to secure a district-scale copper-gold project with existing exploration data and proven mineralisation at a relatively early option stage represents a potentially capital-efficient entry point. The planned systematic exploration programme, beginning with data compilation and target prioritisation before committing to new drilling capital, reflects the kind of disciplined approach that tends to generate value from early-stage exploration projects over time.

Key Insights

Flagship's initial work programme at Fortuna Valle will focus on compiling and validating all historical exploration data, undertaking additional mapping and surface geochemical sampling across the full project area, reviewing geophysical datasets and planning potential survey expansions, and generating and prioritising drill targets for a future drilling program. This methodical approach to exploration programme design reflects the company's intent to maximise the value derived from the existing data set before committing to new drilling capital. The acquisition adds to Flagship's established Chile presence through the Isidora Gold Project — host to a significant gold mineral resource — and broadens the company's commodity exposure as it simultaneously evaluates strategic options for its Whipsaw Copper Project in British Columbia, Canada. Management's emphasis on the long-term demand case for copper, underpinned by the ongoing transition to electrification across global energy systems, underlines the rationale for increasing the company's exposure to this metal in what it views as a structurally favourable supply environment. The addition of Fortuna Valle also reflects Flagship's broader conviction about the investment case for copper in the current commodity environment. Supply constraints arising from declining global ore grades, a relatively thin pipeline of high-quality development projects in well-regarded jurisdictions, and long lead times for new mine permitting and construction are structural features of the copper market that management believes support sustained demand for quality exploration opportunities. For a company building a diversified portfolio of metal assets across multiple jurisdictions, the ability to secure a district-scale copper-gold project with existing exploration data and proven mineralisation at a relatively early option stage represents a potentially capital-efficient entry point. The planned systematic exploration programme, beginning with data compilation and target prioritisation before committing to new drilling capital, reflects the kind of disciplined approach that tends to generate value from early-stage exploration projects over time.