Can First Au Unlock 100% of Liberia’s High-Grade Nimba Gold Project?
First Au Limited has entered a binding term sheet to progressively acquire full ownership of the Nimba Gold Project in Liberia, backed by a planned A$1 million equity raise to fund exploration. The project’s proximity to a major West African gold mine and promising drill results position FAU for a strategic expansion into a stable, mining-friendly jurisdiction.
- Binding term sheet to earn up to 100% of Nimba Gold Project
- A$1 million equity raise planned to support exploration
- Project adjacent to Endeavour Mining’s Ity Gold Mine (+5.4Moz Au)
- Historical drilling shows high-grade gold intercepts (up to 22 g/t Au)
- Performance rights issued based on resource milestones
Strategic Entry into West Africa’s Gold Belt
First Au Limited (ASX: FAU) has taken a decisive step to establish a foothold in one of West Africa’s underexplored yet highly prospective gold regions by signing a binding term sheet to progressively acquire up to 100% of the Nimba Gold Project in Liberia. This expansive 831.09 km² tenement package lies within the Archean West African Craton, a geological setting renowned for hosting multi-million-ounce gold deposits.
Located just 25 kilometres from Endeavour Mining’s prolific Ity Gold Mine in Côte d’Ivoire, which boasts over 5.4 million ounces of measured and indicated resources and produced more than 340,000 ounces in 2024, the Nimba project benefits from geological continuity and proximity to established infrastructure. Liberia’s stable democracy and mining-friendly regulatory environment further enhance the project’s appeal.
Funding and Earn-In Structure
To support the acquisition and upcoming exploration activities, FAU plans to raise A$1 million through an equity placement priced at A$0.0035 per share, targeting sophisticated and wholesale investors. The company’s directors intend to personally invest approximately A$120,000, subject to shareholder approval at a forthcoming General Meeting.
The earn-in agreement is structured in stages, starting with a modest A$100,000 upfront cash payment, followed by equity and cash considerations tied to exploration milestones and resource definition. FAU will initially earn a 35% interest, progressing to 70% upon meeting exploration expenditure commitments, and ultimately has the option to acquire 100% ownership by April 2026. Performance rights linked to resource milestones incentivize the vendor, Hamak Gold Limited, to support the project’s advancement.
Promising Exploration History and Upcoming Work
Previous exploration by Hamak Gold has identified encouraging high-grade gold intercepts, including a standout drill hole intersecting 20 metres at 7 g/t gold, with a high-grade zone of 5 metres at 22 g/t. However, less than 10% of the identified anomaly has been tested, leaving significant upside potential.
FAU’s geological director, Lei Shi, who recently conducted a site visit, highlighted the complex structural geology and alteration patterns that control mineralisation. Despite challenging field conditions, the company plans a focused diamond drilling program in 2025 aimed at refining the geological model and advancing resource definition. Additional exploration targets identified during the site visit offer further potential to expand the resource base.
Governance and Market Implications
Upon completion of the initial earn-in stage, FAU will nominate directors to the board of 79 Resources Inc, the Liberian subsidiary holding the licence, ensuring active oversight of exploration and corporate budgets. The transaction is subject to legal due diligence and shareholder approvals, with the ASX confirming no additional listing rules apply.
This acquisition marks a significant strategic expansion for FAU, complementing its existing Australian gold projects and positioning the company to unlock value in a globally significant gold province. Investors will be watching closely as the company progresses its exploration program and moves toward resource delineation.
Bottom Line?
FAU’s bold move into Liberia’s gold-rich terrain sets the stage for a pivotal exploration campaign that could reshape its growth trajectory.
Questions in the middle?
- How will upcoming drilling results impact FAU’s resource estimates and share price?
- What are the geopolitical and operational risks associated with mining in Liberia?
- How might the issuance of performance rights affect FAU’s capital structure and shareholder dilution?