First Au Limited (ASX:FAU) Enters Binding Term Sheet to Acquire 100% of Nimba Gold Project
Acquisition Details
First Au Limited (FAU) has signed a binding term sheet to earn-in up to 70%, with the option to acquire 100% interest in the Nimba Gold Project in Liberia, encompassing an 831.09 km² tenement package in the highly prospective West African Craton.
Financial Strategy
FAU plans to raise A$1 million in equity at A$0.0035 per share from sophisticated and wholesale investors to support the acquisition. Directors will seek shareholder approval for personal investment of approximately A$120,000.
Project Potential
The Nimba Gold Project is located near Endeavour Mining’s Ity Gold Mine, which produced over 342,860 ounces of gold in the 2024 financial year. Previous exploration identified high-grade, shallow gold intercepts, including 20m at 6.98 g/t Au, with less than 10% of the anomaly tested to date. FAU will initiate focused exploration, primarily using diamond drilling, to define resources.
Executive Comments
Chairman Daniel Raihani stated, “This earn-in joint venture for the Nimba Gold Project represents a transformational opportunity for FAU, establishing our presence in a highly prospective yet underexplored gold region within the West African Craton. With its proximity to a major producing gold mine and promising high-grade gold intercepts, the project aligns perfectly with our strategy to identify and grow high-potential gold assets. Following our fellow director Lei Shi’s December 2024 site visit, FAU has completed our technical due diligence with great satisfaction. Our disciplined approach to exploration and resource definition positions us to unlock significant value from Nimba. We look forward to keeping shareholders updated as we finalise the legal due diligence over the next few weeks.”
Geologist and FAU Director Lei Shi commented, “The recent site visit has provided the Company with critical insights into the structural complexity, lithological controls, and alteration patterns influencing mineralisation in this highly prospective belt. Observing the interplay of the potential gold bearing folded structures, the presence of a well-defined potassic alteration front preceding to chloritic alteration to through to the amphibolite alteration which has been identified as the favorable horizon for the gold bearing fluids for mineralisation within the granitic gneiss host. The granite gneiss potentially acting as a thermal driver for the gold bearing mineralized fluids has significantly enhanced confidence in the current geological model. Although field conditions were challenging, marked by continuous rainfall and swampy terrain, the technical fundamentals remain robust. The Company’s immediate priorities include strategic diamond drilling, targeted step-outs, and refined geophysical interpretations to improve resource delineation with better understanding of structural control of mineralisation and confirm the continuity of high-grade zones.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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