Details of First Au Limited’s $280,000 SPP at $0.001

Summary

• First Au Limited to raise $280,000 via SPP. Issue price at $0.01, current stock price $0.014. The closing date is on 13 July 2020 5:00PM Melbourne time.
• The tentative date of issuance of the new shares is 22 July 2020 and can be traded effective from 23 July 2020.
• Eligible Directors commit $100,000+ towards SPP
• The proceeds to be utilised towards the advanced exploration activities at the flagship Gimlet Gold project, the cost for the acquisition of 80% stake in the Victorian Goldfields Pty Ltd and the general working capital for First Au.

First Au Limited (ASX:FAU) is an advanced gold explorer and developer, expanding its horizon by acquiring the Victorian Goldfield project in the southern Lachlan Fold Belt (LFB). In early June 2020, the explorer announced entering into a binding agreement to acquire 80% stake in the Victorian Goldfields Pty Ltd (“VicGold”) and its assets.

To know more about the Acquisition of Victoria Goldfields and Lachlan Fold Belt: Read Here

First Au continues to advance on existing portfolio

First Au holds the flagship Gimlet advanced exploration project in the Kalgoorlie goldfields, Talga Au-Cu project in the Pilbara region and an 80% stake in the Tambina Au-Cu JV. First Au has been advancing on the 3D IP survey at Gimlet to identify further anomalies and the outcomes from the same are anticipated soon. Application for additional tenement (E16/542) has been put forward by First Au. Post the completion of IP study, a drilling program at the Gimlet site is scheduled to commence.

First Au believes that securing VicGold project in the prolific Gold Copper porphyry region would immensely enhance and complement the existing portfolio and it has already secured funding commitments worth $747,000 through share placement offers from sophisticated and professional investors.

First Au Limited Receives $0.75 Million Funding Commitments, Directors commit $100,000 via SPP

First Au unveils the Share Purchase Plan

As per the share purchase plan, the eligible shareholders can apply up to a maximum of shares of worth $30,000 at an issue price of $0.01 a share. The issue price is the same price that the Company undertook during the SPP placement to sophisticated and professional investors while raising $747,000.

The current SPP is restricted to investors with a registered address in Australia and New Zealand as of 10 June 2020 at 7:00 PM AEST (record date). Further, the eligible directors from the First Au management have committed to contribute $100,000 upwards in the share purchase plan. SPP is expected to raise $280,000 if fully subscribed.

A minimum of 200,000 shares can be applied for, worth $2,000 with the maximum limit of 3 million shares ($30,000) by 13 July 2020 (closing date), 5:00 PM Melbourne time.

A specific lot of shares can only be applied for in the following parcels-

• 200,000 shares worth $2,000
• 500,000 shares worth $5,000
• 1 million shares worth $10,000
• 5 million shares worth $15,000
• 2 million shares worth $20,000
• 5 million shares worth $25,000
• 3 million shares worth $30,000

In case of receipt of application valued in excess of $280,000 of SPP shares, the application would be scaled back. In case of a shortfall, the remaining shares would be placed to sophisticated, professional or other investors exempted from the current SPP structure contingent on the compliance and listing rules.

The tentative date of issuance of the new shares is 22 July 2020 and can be traded effective from 23 July 2020.

The proceeds from the share placement and purchase plans will be utilised towards the advanced exploration activities at the flagship Gimlet Gold project, the cost for the acquisition of 80% stake in the Victorian Goldfields Pty Ltd and the general working capital for First Au.

First Au’s Gimlet presents an early mining opportunity with easy access to existing toll treatment facilities. Acquisition of the VicGold project will further strengthen First Au’s portfolio to explore and develop high grade, low cost gold mining operations.

On 26 June 2020, First Au closed day’s trade at $0.014 a share, up by ~7.7% against the previous close, with a market capitalisation of $4.86 million.

(Note: All currency in AUD unless otherwise specified)