First Au Limited (ASX:FAU) announced the signing of a binding agreement to acquire 80% stake of Victorian Goldfields Pty Ltd (“Vic Gold”) which holds 5 Exploration License Applications at the Victorian Goldfields Project in East Gippsland, Victoria.
First Au gains an early access to the prospective ground in Eastern Australia. Historically recorded mining production suggest the mining activity dates back to 1880s with ore being extracted at gold grades exceeding 1 ounce per tonne (>31.1 grams per tonne). The tenement application area stretches over 2,250 square kilometres with one of the tenements anticipated to potentially host Au-Cu porphyry.
The acquisition will further strengthen the geological team at the First Au with the addition of Ian Neilson, a highly renowned structural geologist, as a consultant. Following the acquisition Mr Gavin England will serve as the Technical Director leading the technical team at the Victoria Goldfields project.
First Au traded at $0.015 a share at 12:26 AEST on 3 June 2020, an increase of ~37% against previous close, with a market capitalisation of $4.48 Million.