First Au Limited (ASX:FAU) announced entering into a conditional binding agreement with 8Au Pty Ltd in respect to a Farm-In and Joint Venture Agreement for the Talga gold and base metals project. As per the agreement, 8Au can earn up to 80% interest in the project upon completion of staged milestones which include-
- Phase 1: Payment of $100,000 towards IP study at Razorback and an exploration expense of $300,000 on exploration in the next 12 months will earn 50.1% stake for 8Au
- Phase 2: An exploration expenditure of $600,000 will earn another 19.9% for 8Au within 2 years
- Phase 3: An exploration expenditure of $900,000 will earn another 10% for 8Au within 3 years
First Au traded at $0.024 a share on 20 November 2020 with a market capitalisation of $11.83 million.