First Au (ASX: FAU) reaches agreement to divest non-core asset

September 11, 2023 02:09 PM AEST | By Sonal Goyal

First Au (ASX: FAU) reaches agreement to divest non-core asset — Image source: Company website

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Highlights

First Au has entered into an agreement with Octava Minerals to sell its remaining interest in the non-core asset, Talga.

With this development, Octava gets 100% interest in the Talga project.

FAU is focused on unlocking value from its Victorian and Gimlet gold projects.

First Au Limited (ASX:FAU) has executed an agreement with Octava Minerals (OCT: ASX) to sell the remaining 30% interest in the Talga project. The project is located in the Western Australia-based Pilbara region.

The consideration for the transaction is AU$0.2 million in cash, 1.2 million OCT shares and a net smelter royalty of 0.75%.

As per the agreement, the sale will be completed within five business days, indicates the company update released 11 September 2023.

The transaction is in line with the company’s focus on unlocking value from core projects and divesting its non-core assets.

Background

A farm-in and joint venture agreement was signed between FAU and OCT, under which the latter could earn up to 80% interest in the project by spending up to AU$0.9 million over three years. Once the expenditure commitments are met until the decision to mine, FAU would retain a 20% interest, as per the agreement.

With the sale of the remaining 30% interest in the Talga project that includes the 20% free carried interest, OCT gets full ownership of the project.

First AU remains committed to advancing its Victorian Goldfields Project in East Gippsland and Gimlet Gold project near Kalgoorlie. Read here about the latest high-grade assays from exploration work at the Victorian asset.

Shares of FAU traded at AU$0.003 apiece midday on 11 September 2023.

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