FirstAu Acquires Sandstone Gold Project
The company signs a binding agreement to acquire the project from Complete Prospecting, covering five tenements in Western Australia's Sandstone gold district, with a cash exclusivity fee of $252,486
FirstAu has signed a binding agreement to acquire the Sandstone Gold Project from Complete Prospecting, covering five tenements in Western Australia's Sandstone gold district. The deal includes a cash exclusivity fee, share consideration, and deferred consideration contingent on the discovery of a minimum mineral resource.
The project area encompasses approximately 3.5km of the Mayard Greenstone Belt and also includes exposure to the Crook Well Greenstone Belt. The tenements comprise four prospecting licences and one exploration licence, providing access to an extensive historical reverse circulation drilling database at the Harmonic and Creasy prospects.
Consideration for the acquisition consists of a $252,486 (A$350,000) cash exclusivity fee. The deferred consideration of A$150,000 will only become payable if FirstAu announces an inferred or higher classification mineral resource of at least 10,000oz of gold, with a minimum grade of 0.5 grams per tonne, within five years of completion.
FirstAu has agreed to a drilling commitment of A$250,000 on the tenements within 24 months of completion. The share consideration will be issued at a price based on the volume-weighted average over the 15 trading days before the completion date, subject to shareholder approval.
## Why it matters The acquisition of the Sandstone Gold Project is significant for FirstAu, as it provides access to a potential gold resource in Western Australia. The project's location in the Sandstone gold district, which has a history of mineralisation, makes it an attractive opportunity for the company. The deal's structure, with a deferred consideration contingent on the discovery of a minimum mineral resource, aligns the interests of both parties and provides an incentive for FirstAu to explore and develop the project.
The acquisition is subject to customary shareholder, regulatory, and third-party approvals. If completed, it will mark a significant milestone for FirstAu, as it expands its presence in the Western Australian gold sector.
