First Au Limited has completed the initial tranche of its $1.5 million private placement, issuing over 4 million shares, while the much larger second tranche awaits shareholder approval at the upcoming AGM.
- Tranche One completed with 4.3 million shares issued at $0.0035 each
- Tranche Two involves over 424 million shares pending shareholder approval
- Non-Executive Director Mr Lei Shi to participate with $120,000 investment
- Shareholder vote required at AGM scheduled by 31 July 2025
- Placement aims to support exploration projects in Victoria, Kalgoorlie, and Liberia
Private Placement Progress
First Au Limited (ASX, FAU), an exploration company focused on gold and base metals, has successfully completed the first tranche of its two-stage private placement, raising approximately $15,000 through the issuance of 4,298,000 new shares at a price of $0.0035 per share. This initial issuance was conducted under the company's existing capacity as permitted by ASX Listing Rule 7.1.
Awaiting Shareholder Approval for Major Funding
The more substantial second tranche, which involves the issuance of 424,273,429 new shares, remains contingent on shareholder approval at the upcoming Annual General Meeting (AGM), scheduled to occur on or before 31 July 2025. This tranche represents the bulk of the targeted $1.5 million capital raise and is critical for the company’s funding plans.
Director Participation Signals Confidence
Notably, Non-Executive Director Mr Lei Shi has committed to participate in the second tranche with a $120,000 investment, subject to shareholder approval. If approved, Mr Shi will receive 34,285,714 new shares under ASX Listing Rule 10.11, reflecting his confidence in the company’s strategic direction and exploration prospects.
Strategic Implications for Exploration Projects
The funds raised through this placement are expected to support First Au’s ongoing exploration activities across its Victorian Goldfields Project in East Gippsland, the Gimlet Gold project near Kalgoorlie, and the pending acquisition of the Nimba Gold Project in Liberia. These projects represent significant growth opportunities in diverse and prospective mining regions.
Next Steps and Market Watch
Investors will be closely watching the outcome of the AGM vote, as approval of the second tranche will substantially increase the company’s capital base but also dilute existing shareholders. The release of the Appendix 2A following the announcement will provide further details on the share issuance. The company’s ability to execute its exploration programs effectively with this capital injection will be a key factor in its near-term valuation and market sentiment.
Bottom Line?
The upcoming shareholder vote will be pivotal in unlocking First Au’s next phase of growth and testing investor appetite for further dilution.
Questions in the middle?
- Will shareholders approve the large second tranche amid dilution concerns?
- How will the capital raise impact First Au’s share price and liquidity?
- What are the timelines and expected milestones for the funded exploration projects?