First Au buys Sandstone Gold Project for $900,000
- First Au has signed a binding agreement to acquire five Western Australian gold tenements for a total consideration of $900,000.
- The acquisition includes $350,000 in upfront cash, $400,000 in shares, and $150,000 in deferred milestone consideration.
- The company plans to evaluate historical drilling data to establish its maiden JORC-compliant resource estimate.
First Au (ASX:FAU) has signed a binding agreement to acquire five tenements comprising the Sandstone Gold Project in Western Australia for up to $900,000 in combined cash, shares, and deferred milestone payments.
The deal gives the company access to an extensive historical reverse circulation drilling database across the Harmonic and Creasy prospects to accelerate resource definition.
FirstAu’s Executive Chairman, Daniel Raihani, commented, "The acquisition of the Sandstone Gold Project is an important addition to FirstAu’s growing Western Australian gold portfolio and provides us with an advanced exploration opportunity where substantial historical work has already been completed.
Under the transaction terms, the business paid $350,000 cash as an exclusivity fee, will issue $400,000 in shares, and will pay $150,000 in deferred consideration upon hitting a defined resource milestone.
Following the announcement, the First Au share price was unchanged at $0.010.
The project covers roughly 3.5km of continuous exposure along the Mayard Greenstone Belt and provides additional access to the Crook Well Greenstone Belt.
First Au stated that it intends to undertake a systematic data validation review to establish a maiden JORC-compliant mineral resource as efficiently as possible.
