- FAU has raised AU$300,000 through a private placement.
- Under the placement, 200 million shares are planned to be issued at 0.15 cents per share.
- Funds would be directed towards general working capital and evaluating new project opportunities.
First Au Limited (ASX: FAU) has completed a private placement to raise AU$300,000.
Under the funding placement to strategic professional and sophisticated investors, the company will issue 200 million new ordinary shares of FAU. The issue price under the placement is AU$0.0015 per share.
The quotation of placement shares is expected to take place on 5 December 2023, informed FAU.
The proceeds will be directed towards the evaluation of new project opportunities as well as general working capital purposes.
Overview of FAU and its project portfolio
FAU is a gold and base metals exploration company, which is focused on advancing activities across its Victorian Goldfields Project and Gimlet Gold project.
Excellent maiden drilling results reported at Haunted Stream - The company conducted maiden drilling at Haunted Stream in Victoria to examine the economic potential below historic workings and to test prospective structural target locations located from previous works and from review of historical data.
The maiden drilling results highlighted discovery of a shallow high-sulphidation gold system from a depth of 38m.
To read detailed drill results from Haunted Stream, click here.
Extension of Snowstorm Option - Recently, the company shared that it entered into an arrangement with Mines of Stirling (MoS) to extend the Snowstorm option agreement to buy prospecting licence 007319 for additional 12-months. The exercise of option would result in 100% ownership of PL007319 by FAU.
For the extension of the option, FAU is required to make a consideration of AU$20k in cash and 10 million FAU shares to MoS.
The company has extended the option while it is advancing the work plan to conduct proposed underground bulk sampling at the project.
The sampling campaign would assist the company in conducting a detailed mapping of the system at the project, expected to enhance understanding of the grade and geological continuity of mineralisation.
The objective of the bulk sampling is to establish the potential economics of the gold project.
FAU shares traded at AU$0.002 apiece at the time of writing on 1 December 2023.