- First Au (FAU) has formally entered a farm-in and joint venture agreement with private company, 8Au, for the Talga Gold and Base Metals Project in WA
- A term sheet was signed in November which requested 8Au pay FAU up to $100,000 for survey costs, however, this has now been increased to $180,000
- 8Au is looking to earn up to an 80 per cent interest in the Talga project by spending a total of $900,000 on exploration within three years
- First Au will hold the remaining 20 per cent interest
- The transaction is still subject to various regulations and approvals which will be sought at some point this month
- FAU ended the day 4.76 per cent in the red with shares trading at 2 cents
First Au (FAU) has officially entered a formal farm-in and joint venture agreement with 8Au for the Talga Gold and Base Metals Project in WA.
This deal replaces the term sheet that was announced in November 2020.
The initial deal will see 8Au earn up to 80 per cent in the Talga project over three stages.
The first stage involves the private company earning an initial 10 per cent interest by reimbursing FAU up to $100,000 relating to costs from an induced polarisation (IP) survey.
Today’s announcement details the $100,000 payment has been negotiated to increase to $180,000 on the commencement of the farm-in and joint venture deal.
The additional 40.1 per cent interest under this stage will be satisfied by spending $300,000 on exploration expenditure within one year of the agreement.
Stage two involves gaining an additional 19.9 per cent interest for a total 70 per cent interest by spending $600,000 (this includes the expenditure in stage one) within two years of the agreement.
The third and final stage will see 8Au gain another 10 per cent for a total 80 per cent in the Talga project. To achieve this, it would have had to spend $900,000 on exploration within three years of the effective date of the agreement.
The transaction is still subject to various regulations and approvals which will be sought at some point this month.
FAU ended the day 4.76 per cent in the red with shares trading at 2 cents.