First Au (ASX:FAU) to raise up to $747K through share placement

• First Au (FAU) has received commitments to raise up to $747,000 through a share placement to existing and new sophisticated and professional investors
• The placement is part of a greater capital initiative to raise up to $1.027 million
• Not only will these funds strengthen the company’s financial position, they will also be put towards further exploration at the WA Gimlet Gold Project, and the proposed 80 per cent acquisition of Victoria Goldfields
• Additionally, First will aim to raise up to $280,000 through a share purchase plan to eligible shareholders
• Company shares have dipped 7.69 per cent in the red to trade for 1.2 cents each

First Au (FAU) has received commitments to raise up to $747,000 through a share placement to existing and new sophisticated and professional investors.

The placement is part of a greater capital initiative to raise up to $1.027 million to strengthen the company’s balance sheet and cash reserves.

Under the placement, First Au will issue 74,700,000 fully paid ordinary shares at one cent per share. These shares represent roughly 25 per cent of the company’s existing issued capital.

The one cent issue price represents a 22.24 per cent discount to the five-day volume-weighted average price (VWAP) of 1.28604 cents and a 17.81 per cent discount to the 15-day VWAP immediately before the trading halt on June 4.

To allow existing eligible shareholders to participate in the raise, First Au is also launching a share purchase plan (SPP) to raise up to $280,000 (being 28 million shares).

Shareholders can apply for up to $30,000 each of new fully paid ordinary shares in the company at one cent each.

The company has also received commitments from its Directors to collectively apply for at least $100,000.

If there’s a shortfall in acceptances under the SPP, First Au may make some or all of the shortfall shares available to sophisticated, professional or other investors.

Funds under the overall capital raise will mainly be applied towards further exploration at First Au’s Gimlet Gold Project near Kalgoorlie.

Funds will also be used to support the proposed acquisition of an 80 per cent interest in Victoria Goldfields. VicGold holds mining applications that make up the Victoria Goldfields Project. Additionally, the company will use the money for general working capital.

Company shares have dipped 7.69 per cent in the red to trade for 1.2 cents each at 3:57 pm AEST.