SYDNEY, AUSTRALIA: First Au Limited has reached an agreement with Octava Minerals (OCT: ASX) to divest its minority interest in the Talga Project, located in the Pilbara region of WA, for consideration of $200,000 cash, 1,200,000 fully paid ordinary shares in OCT and a Net Smelter Royalty (NSR) of 0.75%.
First Au and OCT had previously entered in a farm-in and joint-venture agreement whereby OCT could earn up to an 80% interest in the relevant tenements by spending up to $900,000 over a three-year period. The Company would retain a 20% interest after expenditure commitments had been met up until the decision to mine.
The Company has agreed to sell its remaining 30% interest (including the 20% free carried interest) in the Talga project for the consideration outlined above, resulting in OCT having a 100% interest in the project.
The sale is consistent with First Au’s strategy to realise value from its non-core assets.