First Au Raises $5.6M via 560M Shares at $0.01 to Boost WA Gold Strategy
First Au Limited has successfully raised $5.6 million in a placement to fund exploration at its Gimlet Gold Project and expand its Western Australian gold strategy.
- Placement raises $5.6 million at $0.01 per share
- Directors subscribe $600,000 subject to shareholder approval
- Funds earmarked for Gimlet Gold Project exploration and portfolio growth
- 560 million new shares issued with attaching options exercisable at $0.02
- Bell Potter Securities acted as lead manager
Strategic Capital Injection
First Au Limited (ASX, FAU) has completed a $5.6 million capital raising, signalling a renewed focus on its Western Australian gold assets, particularly the Gimlet Gold Project near Kalgoorlie. The placement, priced at a modest $0.01 per share, attracted strong support from sophisticated investors and includes attaching options exercisable at $0.02 within two years, pending shareholder approval.
Directors Put Skin in the Game
Notably, the company’s directors have committed $600,000 to the placement, underscoring their confidence in the company’s strategic direction. Executive Chairman Daniel Raihani leads this subscription with $350,000, followed by Non-Executive Directors Lei Shi and Piers Lewis contributing $150,000 and $100,000 respectively. This insider participation often serves as a positive signal to the market about management’s belief in the project’s potential.
Focused Exploration and Growth Ambitions
The proceeds will primarily support advancing exploration programs at the Gimlet Gold Project, which boasts a mineral resource of approximately 120,000 ounces at a grade of 3.15 grams per tonne. Beyond Gimlet, First Au intends to leverage the fresh capital to assess additional gold opportunities within Western Australia, aiming to build a robust portfolio in a region renowned for its rich mineral endowment.
Market Position and Outlook
Bell Potter Securities Limited acted as lead manager for the placement, facilitating the company’s access to capital markets. The placement price represents a slight discount to the last closing price but a premium to the recent volume-weighted average price, balancing attractiveness for new investors with value retention for existing shareholders.
Next Steps and Shareholder Approval
While the new shares have been issued under existing ASX listing rule capacities, the attaching options require shareholder approval at an upcoming general meeting. The outcome of this vote will be closely watched, as it will determine the final capital structure and potential future dilution. Meanwhile, First Au’s management is focused on delivering meaningful exploration results that could unlock further value for investors.
Bottom Line?
With fresh funds secured, First Au is poised to deepen its foothold in Western Australia’s gold sector, but the market will watch closely for exploration breakthroughs and shareholder endorsement of the options.
Questions in the middle?
- What specific exploration milestones will First Au target at Gimlet in the coming months?
- How might the attaching options impact shareholder dilution if exercised?
- Are there plans to acquire additional gold projects beyond Gimlet in the near term?
