PERTH: First Au Limited has entered a binding agreement to acquire the Sandstone Gold Project in Western Australia, a move that gives the company access to substantial historical drilling data and an accelerated pathway to defining a maiden mineral resource.

The acquisition includes five tenements — four prospecting licences and one exploration licence — covering approximately 3.5 kilometres of the prospective Mayard Greenstone Belt and additional exposure to the Crook Well Greenstone Belt in the established Sandstone gold district, company announced.

First Au Executive Chairman Daniel Raihani said the project provides an advanced exploration opportunity that allows the company to build on existing work rather than starting from scratch.

“What particularly attracted us to Sandstone is the combination of prospective geology and the substantial historical drilling database,” Raihani said. “Rather than starting from first-pass exploration, we have an opportunity to build on this existing body of work and focus our expenditure on validating the data and advancing the project toward a maiden JORC-compliant Mineral Resource.”

Structured deal links payment to exploration success

The acquisition consideration totals A$900,000, comprising A$350,000 in cash paid as an exclusivity fee and A$400,000 in First Au shares priced on a 15-day volume-weighted average prior to completion. An additional A$150,000 in deferred consideration is payable only if the company delineates a JORC-compliant Inferred Mineral Resource of at least 10,000 ounces of gold at a cut-off grade of 0.5 grams per tonne within five years.

First Au has also committed to a minimum exploration expenditure of A$250,000 on the tenements within 24 months of completion.

The company holds a substantial historical reverse circulation drilling database across the Harmonic and Creasy prospects, which will be the focus of systematic validation work following completion.

The Sandstone acquisition complements First Au’s existing Western Australian gold portfolio, which includes the Barlee, Riverina East and Gimlet projects.

Completion remains subject to shareholder approval under ASX Listing Rule 7.1, regulatory consents and any required ministerial approvals.