First Au (ASX:FAU) has received firm commitments for a $5.6 million placement via the issue of 560 million fully paid ordinary shares with one free attaching option for every two new shares in the placement.
This placement comes alongside the company’s strategic re-focus and portfolio simplification strategy.
The placement includes subscriptions from directors totalling $600,000, subject to shareholder approval.
The placement price is $0.01 per new share, representing a 9.9% discount to the last closing price and an 0.6% premium to the five-trading day volume weighted average price.
Proceeds from the placement will be used towards advancing exploration programs at the company’s Gimlet Gold Project, assessing additional Western Australia-based gold opportunities, and general working capital.
Chairman Daniel Raihani says that “with the strategic refocus now in place and funding commitments received, our attention is focused on execution of our Western Australian gold strategy”.
“The Gimlet Gold Project provides First Au with a highly prospective Eastern Goldfields position, and we are focused on advancing systematic exploration to unlock its potential,” Raihani says.
“The funds received from this raising will allow us to consider expanding our project portfolio. In the meantime, we will concentrate capital and management effort on Gimlet as a single, high-quality opportunity.”
First Au is focused on pursuing gold opportunities in Western Australia, with a focus on the wholly owned Gimlet Gold Project near Kalgoorlie.
Write to Amy Rotman at Mining.com.au
Images: First Au
