First Au Ltd. has agreed to acquire the Sandstone gold project in Western Australia’s established Sandstone gold district, adding to the company’s regional gold portfolio.
The transaction with Complete Prospecting Pty Ltd covers five tenements, four Prospecting Licences and one Exploration Licence, encompassing prospective geology across the Mayard and Crook Well Greenstone Belts.
The project area includes roughly 3.5 kilometres of continuous exposure along the Mayard Greenstone Belt, hosting the core Harmonic and Creasy prospects.
Under the deal structure, First Au will pay AU$350,000 in cash as an exclusivity fee alongside AU$400,000 in First Au shares.
A deferred consideration of AU$150,000 is contingent on First Au defining a JORC-compliant Inferred or higher Mineral Resource of at least 10,000 ounces of gold at a minimum cut-off grade of 0.5 grams per tonne within five years.
The company has also committed to spending at least AU$250,000 on exploration within 24 months.
The acquisition structure provides FirstAu with exposure to an advanced gold exploration opportunity while maintaining capital discipline.
The deal delivers First Au an extensive historical reverse circulation (RC) drilling database. Rather than beginning with early-stage greenfield exploration, the company plans to focus near-term expenditure on systematically validating existing data to fast-track a maiden JORC-compliant Mineral Resource estimate.
First Au Executive Chairman Daniel Raihani said the acquisition aligns with the company’s strategy of adding advanced exploration assets with strong geological foundations.
“What particularly attracted us to Sandstone is the combination of prospective geology and the substantial historical drilling database,” Raihani said.
“Rather than starting from first-pass exploration, we have an opportunity to build on this existing body of work and focus our expenditure on validating the data and advancing the project toward a maiden JORC-compliant Mineral Resource.”
Completion of the deal remains subject to standard regulatory, third-party, and shareholder approvals, including listing rule consents.
