Far East Gold (ASX:FEG) Secures Over A$14m Strategic Investment to Accelerate 2025 Exploration

Highlights

• Far East Gold has received the tranche 3 subscription amount of AUD 4.7 million from Xingye Gold Hong Kong Mining Company Limited.
• Following this transaction, Xingye’s strategic investment in FEG reaches 19.99%.
• As per FEG, it is now well-funded to implement its exploration plans for 2025.
• In the December quarter, FEG signed a conditional share purchase agreement to acquire the Idenburg (IMI) Contract of Work.

ASX-listed copper and gold explorer Far East Gold Limited (ASX:FEG) has provided a strategic funding update. The company has received the tranche 3 subscription amount of over AU$ 4.7 million from its strategic investor Xingye Gold Hong Kong Mining Company Limited (Xingye), after receiving necessary Chinese regulatory approvals.

The three-tranche conditional share placement agreement is now complete, and all the tranches were priced at AUD 0.20c per share. This represents a 47% premium to the July and August 2024 placement and share purchase plan.

The tranche 3 funding takes the total amount received by the company from Xingye to more than AU$ 14.6 million. Following this transaction, Xingye’s strategic investment in FEG reaches 19.99%.

The company views this strategic investment as a crucial element in advancing its exploration objectives and unlocking value across its amazing portfolio of potential Tier 1 assets in Indonesia and Australia. FEG is now well funded to implement its exploration plans for 2025, with a primary focus on the four potential Tier 1 assets within its portfolio of projects.

Reflecting on the development, FEG Chief Executive Officer, Mr. Shane Menere commented: “This transaction represents a significant milestone and turning point in the FEG story. It’s the logical next step and catalyst to unlocking asset value. The recent Idenburg acquisition triggered several approaches from strategic investors, and we found alignment with Xingye as the stand-out partner to develop the assets together. We are delighted to welcome Xingye as our strategic partner and excited about what 2025 will bring.”

Idenburg Resource Estimate Reveals 540koz of Gold

In the December 2024 quarter, FEG took a significant step forward by signing a Conditional Share Purchase Agreement (CSPA) to acquire up to 100% of the highly prospective Idenburg Gold Project, covering an expansive area of 95,280 hectares in the Papua province of Indonesia.

FEG also announced an initial JORC Inferred Resource Estimate (MRE) for Idenburg, which revealed 4.1 million tons at an average grade of 4.1 g/t gold and 3.6 g/t silver. This equates to a total of 540,000 ounces of gold and 468,000 ounces of silver.

The company is confident of expanding the initial JORC gold-silver resource through a planned detailed surface mapping and sampling program followed by a Phase 1 drill program.

The share price of FEG was AU$ 0.170 at the time of writing on 20 February 2025.