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FIRST AU LIMITED — Capital/Financing Update 2019
Aug 12, 2019
64900_rns_2019-08-12_b39101a5-29b7-469e-9e22-9f81daca949d.pdf
Capital/Financing Update
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First Au Limited (ASX: FAU)
13 August 2019
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First Au receives firm commitments for $1.5m in share placement
Proceeds will be used to fund resource and infill drilling at Gimlet gold project near Kalgoorlie
First Au Limited (ASX: FAU) is pleased to announce that it has received firm commitments from Sophisticated and Professional Investors totalling $1.5 million in a share placement.
The placement was completed at 2.5c a share, with a 1-for-2 attaching listed option (exercisable on or before 15 December 2020 at an exercise price of 6c). The placement price represents an 8.1% discount to the 15-day volume-weighted average price (VWAP) of FAU shares of 2.72c a share (refer Placement Terms below).
The proceeds of the raising will be used to fund ongoing resource and infill drilling and metallurgical test work at First Au’s 100 per cent-owned Gimlet Gold Project, near Kalgoorlie in Western Australia.
Gimlet hosts a maiden JORC Inferred Resource of 68,731oz (see ASX release dated 7 May 2019 ). The project sits along strike from and adjoins the tenements of Horizon Minerals Limited (ASX: HRZ), formerly Intermin Resources Limited, which contain the Teal, Jacques Find and Peyes Farm gold deposits. It is also within close trucking distance of five gold mills.
First Au is in the throes of completing a 6,000m aircore drilling program which is testing the potential for further mineralisation for 1.6km along strike from the existing resource. First assays from this program are expected shortly.
First Au Director, Richard Revelins said the proceeds of the raising, combined with the $1.6 million cash the Company had at June 30 2019, meant it was well-funded to pursue an aggressive exploration program at Gimlet.
“The growth potential at Gimlet is substantial,” Mr Revelins said. “The deposit is located on the same structure which hosts the Horizon Minerals’ deposits and the mineralisation is open along strike and at depth.
“We believe our ongoing investment in drilling offers significant scope to create further value for shareholders.”
Placement Terms:
The placement is to Sophisticated and Professional Investors and will be undertaken in two Tranches being 37.8m shares (63%) in Tranche 1 under the Company’s current Listing Rule 7.1 allowance and 22.8m shares (37%) in Tranche 2 subject to the approval of First Au shareholders. All 1 for 2 attaching options will be in the same class as First Au’s existing listed options (FAUO) and allotment will also be subject to shareholder approval. The total number of shares to be allotted is 60 million and the total number of attaching options is 30 million. The placement has been arranged through Peregrine Corporate Ltd.
First Au Limited ACN 000 332 918 Registered Office: Level 1 / 123 Whitehorse Road, Balwyn Vic. 3103 Australia. Telephone 03 9817 0700 Facsimile 03 9817 0799 Website: www.firstau.com Email: [email protected]
About Gimlet
The FAU 100% owned Gimlet Project occurs 15 km NW of Kalgoorlie, Western Australia. The tenement (EL26/174 and application M26/849) occupies 9.6 km[2] in area and adjoins the tenements of Horizon Minerals Limited (ASX: HRZ) containing the Teal, Jacques Find and Peyes gold deposits (289,000 oz Au). It is also within close trucking distance of five gold mills within the Kalgoorlie area, with several offering the toll treatment of ore to third parties. The geology in the tenement is prospective for gold, dominated by metamorphosed felsic and intermediate volcanic rocks of Black Flag Group of the Kalgoorlie Terrane, Yilgarn Craton. This Archean geology is overlain by Cainozoic sediments, including some areas covered with salt lakes, which has previously inhibited the effectiveness of some of the historic exploration. First Au recently completed its maiden aircore and RC programs, which returned strong intersections, including 3m at 462 g/t Au from 52m (refer ASX release dated 8 November 2018 and 1 December 2018 ). The company has also recently announced a maiden JORC Inferred Resource of 68,731 ounces Au (refer ASX release dated 7 May 2019 ).
Table 1: April 2019 MRE using 1.3g/t cut-off
| Apr-19 Inferred MRE | Tonnes | Grade(g/t Au) | Ounces |
|---|---|---|---|
| Oxide | 75,034 | 3.32 | 8,007 |
| Transitional | 65,495 | 3.04 | 6,406 |
| Fresh | 501,830 | 3.37 | 54,308 |
| Total | 642,359 | 3.33 | 68,731 |
The information in this ASX Release that relates to the Company’s Mineral Resources estimates or Ore Reserves estimates is extracted from and was originally reported in the Company’s ASX announcements “Maiden JORC Resource at Gimlet” dated 7 May 2019, which is available at www.asx.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the estimates in those announcements continue to apply and have not materially changed. The Company confirms that the form and context of the Competent Person’s findings in relation to those Mineral Resources estimates or Ore Reserves estimates have not been materially modified from the original market announcements.
On Behalf of the Board
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Bryan Frost Executive Chairman
About First Au: First Au is an advanced gold and base metals exploration company listed on the Australian Securities Exchange (ASX: FAU) and is pursuing a well-funded and aggressive exploration program at its 100% owned Gimlet Gold project near Kalgoorlie and its Emu Creek and Talga Projects in the Eastern Pilbara region of Western Australia.
Enquiries in relation to this announcement please contact either :
Richard Revelins: [email protected] +61-418-534-737 Paul Armstrong: [email protected] +61-421-619-084
Competent Persons Statement
The information in this announcement that relates to Exploration Results is based on information compiled by Dr Gavin England, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geosciences. Dr England is a consultant to First Au Limited. Dr England has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr England consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.