First Au has entered into a binding agreement to acquire the Sandstone Gold Project from Complete Prospecting Pty Ltd in Western Australia’s established Sandstone gold district for potential consideration totaling A$900,000.
The consideration consists of A$350,000 in cash paid as an exclusivity fee, A$400,000 in First Au shares, and up to A$150,000 in deferred consideration tied to achieving a defined mineral resource milestone.
The acquisition covers five tenements consisting of four Prospecting Licences and one Exploration Licence. The project provides exposure to the Mayard and Crook Well Greenstone Belts and includes approximately 3.5 kilometers of continuous exposure to the Mayard Greenstone Belt.
The Sandstone project also includes a substantial historical reverse-circulation drilling database covering the Harmonic and Creasy prospects. First Au intends to validate and review this historical information with the goal of establishing a maiden JORC-compliant Mineral Resource.
The A$150,000 deferred payment becomes payable if First Au establishes a JORC-compliant Inferred or higher Mineral Resource of at least 10,000 ounces of gold at a cutoff grade of at least 0.5 grams per tonne on one or more of the tenements within five years after completion.
First Au has also committed to spend at least A$250,000 on exploration at the tenements within 24 months of completion.
The transaction remains subject to shareholder, regulatory, and third-party approvals, including applicable ministerial consents.
The acquisition expands First Au’s Western Australian gold portfolio alongside its existing Barlee, Riverina East, and Gimlet projects.
KEY QUOTES:
“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. What particularly attracted us to Sandstone is the combination of prospective geology and the substantial historical drilling database. 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. The acquisition has also been structured to align a portion of the consideration with exploration success, providing FirstAu shareholders with significant exposure to the project’s potential while maintaining capital discipline. Following completion, our priority will be to systematically validate the historical data and determine the most efficient program to advance Harmonic and Creasy.”
Daniel Raihani, Executive Chairman of First Au
