First Au Ltd (FAU) has entered into a binding term sheet to acquire 80 per cent of the issued share capital of Victorian Goldfields Pty Ltd, which holds applications making up the Victorian Goldfields Project.
The consideration for the acquisition will be an initial allotment of 10 million ordinary shares of FAU and up to a further 70 million shares of FAU in tranches of 10 million shares each subject to achievement of specific milestones. An amount of $75,000 is also payable at completion.
The VicGold project comprises five exploration license applications in East Gippsland, Victoria, Australia, located around the towns of Bruthen, Swift Creek and Dargo. It presents an opportunity for FAU to establish a stake in the highly prospective Victorian goldfields.
The flagship Haunted Stream application area shows potential for significant high-gold continuity, indicated from historic workings and rock chip sampling for over 8-km strike length. Historic mine records dating back as far as the 1880s from Victorian Government show ore being extracted at above 1 ounce per tonne (e.g. Exhibition Mine reported production at over 5 oz Au per tonne). The total application area of over ~ 2,250 sq. km, would subject to grant make FAU one of the significant leaseholders in Eastern Victoria.
The Haunted Stream area contains significant historic workings that have had limited to no drilling to effectively test their depth extents. In addition to the historic workings, there occur untested, prospective, saddle-reef style zones and numerous under-explored mafic intrusive dykes associated within the system presenting new and immediate high-grade Central Victoria-style orogenic targets, as well as Walhalla and Morning Star analogue exploration opportunities. The gold fertility of the tenement package is also further evident in the long history of alluvial mining in the area.