BALWYN: First Au Limited (ASX: FAU) announced Wednesday it has entered into a binding term sheet to acquire up to 100% of the Nimba Gold Project in Liberia, a high-potential exploration site in the mineral-rich West African Craton.
The deal, which includes an initial 70% earn-in option, covers an 831.09-square-kilometer tenement package in northern Liberia, near the prolific Ity Gold Mine operated by Endeavor Mining. The project has already yielded promising drill results, including a high-grade intercept of 20 meters at 6.98 grams of gold per ton.
Key Highlights:
– Strategic Location: The project is situated in a gold-endowed region, roughly 25 kilometers from Endeavour Mining’s Ity Gold Mine, which produced over 342,860 ounces of gold in 2024.
– Exploration Potential: Less than 10% of the identified gold anomaly has been tested, with additional targets identified during a December 2024 field visit.
– Funding: FAU plans to raise A$1 million (US$660,000) through a share placement at A$0.0035 per share to fund the acquisition and exploration. Directors will seek shareholder approval to invest approximately A$120,000 personally.
– Deal Structure: The agreement includes minimal upfront cash payments, with staged equity-based considerations tied to future resource milestones.
FAU will launch a diamond drilling program in 2025 to better understand the structural controls on mineralization. The company aims to define a substantial gold resource, with performance-based payments triggered if resources reach 750,000 ounces or 1.5 million ounces.
Daniel Raihani, FAU’s chairman, called the project a “transformational opportunity” for the company, citing Liberia’s stable democracy and mining-friendly policies. The transaction remains subject to legal due diligence and shareholder approval.
Liberia, which borders gold-rich jurisdictions like Guinea and Ivory Coast, has seen increased mining investment under President Joseph Boakai, who took office in January 2024.