First Au Raises $1.5M to Drive Nimba Gold Project Forward
First Au Limited has successfully raised $1.5 million through a private placement, exceeding its initial target, to fund its strategic acquisition of the Nimba Gold Project in Liberia.
- Private placement increased from $1 million to $1.5 million due to strong investor demand
- Placement to be issued in two tranches, with the second tranche subject to shareholder approval
- Non-Executive Director Lei Shi to participate in the placement, pending approval
- 571 million new performance rights to be issued, tied to performance hurdles and share price conditions
- Funds will support the acquisition and development of the Nimba Gold Project in Liberia
Strong Investor Support Boosts Capital Raise
First Au Limited (ASX – FAU) has announced firm commitments to raise A$1.5 million through a private placement, surpassing its initial target of A$1 million. This increase reflects robust interest from both domestic and international investors eager to back the company’s expansion plans. The placement price of A$0.0035 per share represents a modest premium to the recent trading price, signaling investor confidence in the company’s prospects.
Two-Tranche Placement Structure
The capital raise will be executed in two tranches. The first tranche involves issuing approximately 4.3 million shares under the company’s existing placement capacity, expected to be completed by 24 June 2025. The second tranche, comprising over 424 million shares, awaits shareholder approval at the upcoming Annual General Meeting (AGM) scheduled on or before 31 July 2025. This staged approach balances timely capital injection with governance oversight.
Director Participation and Performance Rights
Notably, Non-Executive Director Lei Shi has committed to participate in the second tranche, contributing A$120,000, subject to shareholder approval. This insider participation often serves as a positive signal to the market. Additionally, the company plans to issue over 571 million new performance rights split evenly into Class A and Class B. These rights are contingent on meeting specific performance hurdles and have an exercise price linked to the higher of the 15-day volume weighted average price or a floor price of A$0.0035, aligning management incentives with shareholder value creation.
Backing the Nimba Gold Project Acquisition
The funds raised will support First Au’s ongoing acquisition and development of the Nimba Gold Project in Liberia, a high-potential gold exploration asset recently secured under a binding term sheet. The project is held through a subsidiary of Hamak Gold Limited, with exploration licenses granted by the Liberian government. This strategic move positions First Au to expand its footprint beyond its existing Victorian Goldfields and Gimlet Gold projects in Australia.
Outlook and Next Steps
While the placement and performance rights issuance depend on shareholder approval, the strong demand and insider participation bode well for successful completion. Investors will be watching closely for updates on the AGM outcomes and progress on the Nimba project’s exploration milestones. The company’s ability to execute on these fronts will be critical to unlocking value for shareholders.
Bottom Line?
First Au’s successful capital raise sets the stage for advancing its Liberian gold ambitions, but shareholder approval remains the key hurdle ahead.
Questions in the middle?
- What specific performance hurdles must be met for the Class A and B performance rights to vest?
- How will the significant share issuance impact existing shareholder dilution and share price in the near term?
- What is the timeline and planned exploration strategy for the Nimba Gold Project following acquisition?
