First Au Exits Liberia JV, Faces Funding Needs Amid Strategic Refocus

Nimba Gold Project Assays Confirm Mineralisation

First Au Limited (ASX, FAU) has delivered encouraging initial assay results from its ongoing drilling program at the Nimba Gold Project in Liberia. The first drill hole, FADD25-001, intersected a broad zone of gold mineralisation, including 29 metres at 0.97 grams per tonne (g/t) from 49 metres depth, and a higher-grade interval of 8 metres at 2.55 g/t from 130 metres. Notably, within this, a 2-metre section returned 8.73 g/t gold, confirming the continuity and potential widening of mineralisation at depth.

Subsequent holes FADD25-002 and FADD25-003, located north of the initial discovery, have intersected extensive zones of favourable alteration consistent with gold mineralisation, although assay results are pending. The mineralised zones remain open at depth and along strike, suggesting further exploration upside. The company plans to conduct additional screen fire assays to better quantify gold grades, which may be underestimated due to the nuggety distribution of gold.

Divestment of Eastern Victorian Goldfield Project

In a significant portfolio move, First Au has entered into a binding Heads of Agreement with AustChina Holdings Limited (now Pacific Resources Limited, ASX, PXR) granting them an exclusive 19-month option to acquire First Au’s Eastern Victorian Goldfield Project. The project, located in East Gippsland, Victoria, is prospective for gold, base metals, and critical minerals, with previous drilling returning high-grade gold intercepts.

Under the agreement, AustChina has paid a non-refundable option fee comprising $75,000 cash and $150,000 in shares, with a potential acquisition payment of $200,000 cash plus $500,000 in shares upon exercising the option. This divestment allows First Au to unlock value from a non-core asset and focus its resources on its Western Australian and Liberian projects.

Strategic Refocus on Western Australia and Portfolio Simplification

Reflecting broader market preferences and operational considerations, First Au announced a strategic refocus on its Western Australian gold projects. The company has agreed to exit its joint venture interest in the Nimba Gold Project in Liberia, exchanging its 35% stake for a 2% net smelter return royalty. This move eliminates offshore operational risks and ongoing funding obligations, allowing management to concentrate fully on Australian assets.

The company’s Western Australian portfolio includes the Gimlet Gold Project near Kalgoorlie, where over 4,000 metres of reverse circulation infill drilling was recently completed. This drilling aims to upgrade the resource classification from Inferred to Indicated, enhancing confidence in the mineral resource and supporting future mining studies.

Board Changes and Corporate Governance

First Au has also implemented key board changes to support its strategic direction. Daniel Raihani transitions from Non-Executive to Executive Chairman, while Lei Shi moves from Executive Director to Non-Executive Director. The company appointed Piers Lewis, a seasoned corporate advisor with extensive experience in resource sector finance, as a Non-Executive Director. Meanwhile, Non-Executive Director Nicholas Karl Smithson resigned. These changes aim to strengthen governance and align leadership with the company’s renewed focus.

Financially, First Au reported a net cash decrease during the quarter, with operating activities consuming $244,000 and cash reserves standing at $158,000 at quarter-end. The company plans to raise additional capital to fund ongoing operations and exploration activities in Australia.