First Au Ltd. has decided to shift its strategic focus to Western Australian gold and will exit its joint venture interest in the Liberia-based Nimba gold project as part of the refocus.
Following a comprehensive review of its asset portfolio and market positioning, First Au decided on a portfolio simplification, exiting from offshore assets and concentrating future activities on Western Australia-based gold projects, including its Gimlet gold project near Kalgoorlie.
First Au’s board said a simplified, Australia-centric strategy is essential to rebuilding market confidence and providing a clear platform for long-term shareholder value creation.
First Au Chairman Daniel Raihani said: “First Au has undertaken a deliberate reset to simplify the business and sharpen its strategic focus.
“By exiting offshore assets and concentrating exclusively on Western Australian gold, we believe the company is better aligned with ASX investor expectations and better positioned to rebuild relevance and long-term shareholder value.”
The company noted that gold exploration, development and production in Western Australia continue to command a valuation premium on the Australian stock exchange relative to offshore gold assets.
Gold production and development in the region have established infrastructure and jurisdictional certainty and regulatory transparency.
As part of the agreed terms to exit its joint venture interest, First Au will exchange its 35 per cent shareholding in 79 Resources Ltd. for a 2 per cent net smelter return royalty over the Nimba licence, preserving potential upside exposure without additional capital commitment or operational involvement.
The company’s board is also being restructured as part of the portfolio simplification. Nicholas Karl Smithson will resign from the board.
Current non-executive Chairman Daniel Raihani will transition to Executive Chairman.
In addition, current Executive Director Lei Shi will transition to a non-executive Director.
The changes take immediate effect.
Piers Lewis was appointed as an on-executive Director.
