First Au (ASX:FAU) has entered a binding agreement to acquire the Sandstone Gold Project in Western Australia for $900,000 plus deferred consideration.
The acquisition comprises five tenements covering approximately 3.5km of the prospective Mayard Greenstone Belt in the Sandstone gold district.
Under the terms, First Au will pay $350,000 in cash, $400,000 in shares, and $150,000 in deferred consideration. The deferred payment is contingent on delineating an inferred mineral resource of at least 10,000 ounces of gold at a cut-off grade of 0.5 grams per tonne gold within five years.
Executive Chairman Daniel Raihani says the acquisition provides exposure to prospective geology with existing drilling data rather than starting from first-pass exploration.
“We have an opportunity to build on this existing body of work and focus our expenditure on validating the data and advancing the project toward a maiden JORC-compliant mineral resource,” Raihani says.
First Au has committed to spend a minimum $250,000 on exploration within 24 months of completion, with any shortfall payable to vendor Complete Prospecting.
Completion remains subject to shareholder approval under ASX listing rule 7.1, regulatory approvals, and ministerial consents. A general meeting will be held in the near future, with completion expected shortly thereafter.
First Au is a mineral explorer focused on discovering gold and base metal projects in WA.
Write to Paula Fabe at Mining.com.au
Images: First Au
