First Au Limited (ASX:FAU) has begun its Talga joint venture and farm-in agreement with Octava Minerals Limited, with all conditions being satisfied including Octava receiving confirmation from the ASX that it will be admitted to the Official List of ASX.
Octava is anticipated to commence trading on the ASX on Friday 16 September 2022.
Octava has made a cash payment to First Au for $180,000 as reimbursement for prior expenditure per the terms of the agreement, for which Octava has obtained an unencumbered initial 10% interest in the Talga project.
Following this, Octava will be able to earn up to an 80% interest in the Talga project by spending up to $900,000 over a three-year period.
The completion of the transaction and commencement of the agreement will allow First Au to continue its focus, expenditure and efforts on the exploration of Victorian Goldfields Project (VicGold) located in the East Gippsland, Victoria and the Gimlet Gold Project (Gimlet) located near Kalgoorlie, Western Australia.
First Au will retain a free carried interest in the Talga project, while having no expenditure commitments, allowing the company to retain upside to any exploration success at the project.
The Talga project, located in Western Australia’s Pilbara region, will initially be the primary focus of Octava’s exploration, targeting lithium and gold.
Historically, there has been minimal exploration conducted for lithium on the project ground, however the recent recognition of other projects in the area, including Global Lithium’s Archer Lithium Deposit (Inferred Mineral Resource of 10.5Mt at 1% Li20) have highlighted the potential for Talga to host lithium mineralisation.
Historical exploration works have identified pegmatites within the southern part of the Talga tenements which highlight the lithium prospectivity.
