- First Au (ASX: FAU) has withdrawn from its Emu Creek Joint venture with Atlas Iron after reviewing exploration results
- The company had entered into a farm-in agreement to acquire a 51 per cent interest in the project by spending $190,000 on exploration
- However, First Au will now transfer its legal and beneficial interest in the Emu Creek Joint Venture to Atlas Iron
- First Au’s shares price went unchanged today, worth 0.9 cents per share
First Au (ASX: FAU) has withdrawn from its Emu Creek Joint venture with Atlas Iron after reviewing exploration results.
The company entered into a farm-in agreement with Atlas Iron in 2016. This saw First Au acquire a 51 per cent interest in the project in exchange for spending $190,000 on exploration.
The Farm-in also outlined the acquisition of a 70 per cent stake in the project following the completion of a bankable feasibility study within five years.
However, in a statement today, First Au announced it is withdrawing from the joint venture.
“After a detailed review of exploration results over the past 18 months the Company reached the conclusion that the results generated to date did not support First Au undertaking the next phase of exploration,” the company said.
First Au will now transfer its legal and beneficial interest in the Emu Creek Joint Venture to Atlas Iron.
The tenements will not, however, need to be transferred as Atlas Iron remained the registered holder.
First Au will redirect resources intended for the Emu Creek project to its fully owned Gimlet Gold project near Kalgoorlie.
Shares in the company went unchanged today, worth 0.9 cents per share.