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Summary
- First Au advancing on the acquisition of 80% stake in VicGold and the Snowstorm project in two separate agreements
- Exercisable option to acquire remaining 20% equity exercisable upon decision to mine the Victorian goldfields project
- Equity compensation upon completion of acquisition and estimation of mineral resources at Victorian goldfields project
First Au Limited (ASX:FAU), a prominent and experienced gold and base metals explorer, after consultation with the Australian stock exchange (ASX) announced that the explorer has agreed to vary the equity structure linked to the acquisition of 80% of the issued capital of Victorian Goldfields Pty Ltd (VicGold). VicGold directly or indirectly holds the exploration license applications of the Victorian Goldfields Project.
Read Here: First Au Limited’s New Ace in the Arsenal, The Victorian Goldfields Project
First Au may also acquire the remaining 20% stake in the issued capital of VicGold upon exercising of an option on the decision to commence mining of the minerals project. The current acquisition transaction includes the acquisition of 80% equity of VicGold and an exercisable option to acquire the remaining 20% stake.
First Au reiterates that the cumulative consideration for equity acquisition remains unchanged, but the expenditure related milestones have been removed and the area subjected to the milestone targets be restricted to the Victorian Goldfields Project as against the Victorian Goldfields and Snowstorm project with an increase in the number of shares at completion and is anticipated to issue upon the grant of the exploration license. The cumulative shares of First Au remain unchanged.
Must Read: First Au to Acquire 80% in Victoria Goldfields
The amended details of the acquisition of 80% stake in the Victorian Goldfields Pty Ltd are as follows:
- 20,000,000 fully paid ordinary shares at an issue price of $0.01 a share upon completion of the acquisition transaction
- 25,000,000 fully paid ordinary shares to be issued upon granting of exploration licenses namely, EL 006975, EL 006976 and EL 006977 within 5 years of completion of the acquisition transaction
- 5,000,000 fully paid ordinary shares to be issued upon the grant of exploration license EL 005422 within 5 years of completion of the acquisition transaction
- 10,000,000 fully paid ordinary shares to be issued upon the estimation of independently verified JORC compliant minimum Inferred resource of 3.110 million tonnes at a grade of at least 1 g/t containing 100,000 ounces or more of Gold in the Victorian Goldfields Project by First Au, within 5 years of completion of the acquisition transaction
- 10,000,000 fully paid ordinary shares to be issued upon the estimation of independently verified JORC compliant minimum Inferred resource of 7.775 million tonnes at a grade of at least 1 g/t containing 250,000 ounces or more of Gold in the Victorian Goldfields Project by First Au, within 5 years of completion of the acquisition transaction
- 10,000,000 fully paid ordinary shares to be issued upon the estimation of independently verified JORC compliant minimum Inferred resource of 15.551 million tonnes at a grade of at least 1 g/t containing 500,000 ounces or more of Gold in the Victorian Goldfields Project by First Au, within 5 years of completion of the acquisition transaction.
Read Here: First Au Limited Receives $0.75 Million Funding Commitments, Directors commit $100,000 via SPP
First Au closed at $0.020 a share, with a market capitalisation of $8.03 million.
All financial information pertains to Australian dollar unless stated otherwise.
