First Au’s SPP 11 times oversubscribed on overwhelming response, Shares Up 11.76% - Kalkine Media

Summary

• Application worth over $3 million received against $280,000 sought
• Directors & Officers applied for shares worth $100,000
• Proceedings to Fund Gimlet Exploration and Acquisitions of VicGold and Snowstorm deposits

Advanced gold and base metals explorer, First Au Limited (ASX: FAU) announced an oversubscription of the share purchase plan following an overwhelming response by the existing shareholders.

Applications worth $3,033,500 against $280,000 planned under the Share Purchase Plan

The company received a total of $3,033,500 worth applications for the fully paid ordinary shares at an issue price of $0.01 a share. The Share purchase plan was closed on 13 July 2020. The eligible directors and officers together applied for over $100,000 value shares under the SPP and will be scaled back in line with other SPP applications.

Read: Details of First Au Limited’s $280,000 SPP at $0.01

The applications were received from the eligible shareholders for the staggering amount of $ 3,033,500, almost 11 times the capital sought through the SPP. The targeted capital raisings stood at $280,000 under the Share purchase plan. First Au will scale back almost 89% of the applications on the basis of the eligibility of each eligible shareholder under the SPP offer.

First Au will allot a total of 27,999,970 fully paid ordinary shares at an issue price of $0.01 a share. The SPP shares will be issued on Wednesday 22 July 2020 and the shares would commence trading on Thursday 23 July 2020 on the Australian stock exchange. Shares issued under the SPP will rank equally as the existing ordinary shares. The refunds of the payments will be made via EFT or through cheques sent to the registered shareholders’ addresses, in cases when the EFT information is unavailable with the company. The refund payments can be expected by Friday 24 July 2020.

First Au Portfolio Projects: Acquisitions in Advanced Stages of Completion

First Au had announced the signing of an option agreement to acquire 85% interest (post dilution 80%) of the granted exploration tenement EL 5505 and prospecting license PL 007310 or the Snowstorm project. Snowstorm project is 15 kilometres north of the Victoria Gold Pty Ltd. First Au is also in advanced stages of due diligence and execution documents for acquiring 80% of VicGold.

Read: First Au expanding Victorian Gold project via Acquisition of additional prospects

First Au is advancing on the flagship Gimlet Gold Project near Kalgoorlie goldfields in Western Australia holding mineral resources of over 70,000 ounces of Gold.

Earlier First Au had secured fund raisings worth over $747,000 under the Share Placement. The SPP now increases the capital raising initiative at $1,207,000, which would further strengthen First Au’s balance sheet.

Must Read: First Au Establishing Gold Prominence Through 2 Aces in The Stack

The proceedings from the Share placement and purchase programs would be utilised towards-

• Exploration expense relating to flagship Gimlet Gold Project near Kalgoorlie Goldfields
• Acquisition costs for taking over 80% interest (post dilution) in VicGold and Snowstorm leases
• General working capital

First Au closed at $0.019 on 15 July 2020, registering an increase of ~11.76% against the previous close, with a market capitalisation of $7.1 million.

All financial information pertains to Australian dollar unless stated otherwise.