Key points
- Acquisition of five tenements in established Sandstone gold district
- Includes substantial historical RC drilling database
- Attractive acquisition structure with A$350,000 cash and A$400,000 in shares
- Deferred consideration of A$150,000 linked to Mineral Resource milestone
- Target to establish a maiden JORC-compliant Mineral Resource
Full summary
First Au Limited has entered into a binding agreement to acquire the Sandstone Gold Project from Complete Prospecting Pty Ltd. The acquisition includes five tenements in Western Australia's established Sandstone gold district, featuring a substantial historical RC drilling database across the Harmonic and Creasy prospects. The acquisition structure includes A$350,000 in cash as an exclusivity fee, A$400,000 in FAU shares, and A$150,000 in deferred consideration contingent on achieving a JORC-compliant Mineral Resource within five years. The project covers approximately 3.5km of the Mayard Greenstone Belt and provides exposure to the Crook Well Greenstone Belt. First Au intends to validate the historical data and target a maiden JORC-compliant Mineral Resource.
Guidance
A$150,000 deferred consideration linked to Mineral Resource milestone within five years
Outlook
First Au aims to validate historical data and advance the project toward a maiden JORC-compliant Mineral Resource.