First Au (ASX:FAU) issues update on Talga JV and farm-in with Octava Minerals

Highlights

• First Au has commenced its Talga JVFI with Octava Minerals.
• FAU has received a cash consideration, while Octava has secured an initial 10% interest in the Talga project with an ability to earn up to 80%.
• First Au will retain upside to exploration success at the project through a free carried interest.
• The development allows FAU to focus on its other mineral projects, especially its Victorian gold projects.

Advanced gold and base metals explorer First Au Limited (ASX:FAU) has shared an update on the Talga Joint Venture and Farm-in agreement (JVFI) with Octava Minerals Limited.

In a major development, all conditions precedent for the JVFI have now been fulfilled. Moreover, Octava has received confirmation from the ASX for its inclusion in the Official List of ASX; however, this remains conditional under numerous administrative and completion terms.

As per the announcement, Octava is likely to begin trading on the ASX on Friday, 16 September 2022.

Image Source: Company Announcement

In-depth details of the agreement

Octava has paid AU$180,000 in cash to First Au as reimbursement for prior expenses, following the terms of the contract. Meanwhile, Octava has received an unencumbered initial 10% interest in the Talga project.

To earn up to 80% interest in the project, Octava is required to make expenditures up to AU$900,000 over a three-year period.

Initially, Octava’s exploration endeavours will be focused on the Talga project, targeting gold and lithium. Notably, there has been minimal exploration for lithium across the tenement area in the past. But as per the recent recognition of other projects near the project site, including Global Lithium’s Archer Lithium Deposit (Inferred Mineral Resource of 10.5Mt @ 1% Li20), there is potential for Talga to host lithium mineralisation.

Pegmatites have been identified within the southern part of the Talga tenements during historical exploration works, highlighting the lithium prospectivity.

FAU to focus on Victorian and WA gold projects

With the completion of the transaction and commencement of the agreement, FAU will be able to continue its focus, expenditure, and efforts on the exploration of Victorian Goldfields Project and the Gimlet Gold Project.

VicGold is based in East Gippsland, Victoria, while the Gimlet Gold Project is located near Kalgoorlie, Western Australia.

Moreover, First Au will retain upside to exploration success at the Talga project through a free carried interest.  

Stock information: FAU shares were trading at AU$0.007 apiece midday on 14 September 2022.