PERTH: First Au Limited said Friday it has entered a binding agreement to acquire the Lady Jane Gold Project from ASX-listed Dynamic Metals Limited, expanding its Riverina tenure in the Ora Banda district of Western Australia’s Eastern Goldfields.

The acquisition comprises six exploration licences strategically located near Ora Banda Mining’s Davyhurst gold operations, including the Riverina and Sand King underground mines and the Davyhurst processing facility. The Lady Jane tenure covers Archean greenstone geology at the convergence of the Zuleika Shear and Ida Fault, the same regional structural setting that hosts OBM’s underground gold mines.

First Au Executive Chairman Daniel Raihani said the acquisition is a natural extension of the company’s Riverina East project and strengthens its position in one of the Eastern Goldfields’ most active gold corridors.

“The project sits within the same structural setting that hosts Ora Banda Mining’s Riverina and Sand King underground operations, and the dataset generated by DYM’s recent fieldwork gives us a strong foundation to move quickly on target generation and follow-up drilling,” Raihani said.

Under the terms of the agreement, First Au will pay A$50,000 on execution and a further A$100,000 on completion. An additional A$500,000 is deferred to the first anniversary of completion, payable in cash or First Au shares at the seller’s election, subject to shareholder approval under ASX Listing Rule 7.1 if shares are elected. The agreement also includes a 1.5% gross revenue royalty.

First Au has committed to incurring at least A$250,000 in drilling-related expenses within the tenements within 24 months of completion.

Completion remains subject to the parties obtaining all necessary approvals and consents and entering into required deeds of assignment, covenant or similar arrangements under relevant third-party agreements.

Recent field activities by Dynamic Metals, including soil sampling and geological mapping across the Lady Jane tenure, provide First Au with an established exploration dataset and identified target areas for follow-up work.

The Riverina East Gold Project is centered on the historic high-grade First Hit gold mine, which previously produced 30,000 ounces of gold at an average head grade of 7.7 grams per tonne during operations by Barra Resources in 2002. The project incorporates approximately 340 square kilometers of tenements, including two active mining licences, five prospecting licences, eight granted exploration licences, one exploration licence application and one option agreement.

First Au said the acquisition is consistent with its strategy of building a portfolio of Western Australian gold assets in regions of significant gold mineralization and existing infrastructure.

The company said the announcement does not contain any exploration results.