First Au is set to earn up to an 80% interest by subscribing to a share placement of 20 million shares in West Wits at 0.9 cents each and a cash payment of $60,000 plus $500,000 of exploration expenditure over three years.
The JV will allow WWI to unlock value from the Tambina project while focusing on the development of its flagship Witwatersrand Basin Project in South Africa.
West Wits exploration director Andrew Tanks said: “The Tambina project is an excellent fit with FAU’s existing Pilbara project portfolio, offering significant synergies to both companies.
“The Tambina JV agreement enables the Tambina project to advance whilst allowing WWI to maintain focus and resources on its cornerstone Witwatersrand Basin Project leading up to the granting of mining rights.
“The share placement delivers on most of the shortfall from WWI’s December 2018 share purchase plan, providing top-up capital for the board to execute its WBP development strategy.
“The share placement offers FAU shareholders significant value with exposure to WWI’s expansive 3.65-million-ounce gold JORC resource as the company nears full-scale development.”
FAU’s geology team is actively exploring seven existing exploration licences (EL) across its Pilbara portfolio and Tambina’s three granted mining licences (ML) provides FAU the opportunity to include a project that can move to production without the regulatory hurdles associated with an EL.
In 2018 West Wits completed two field trips and produced a geological report, which noted there is mineralisation at surface associated with outcropping gossanous iron-earth chert layers.
Collectively the combined strike length is around 1,300 metres including two broader zones in the south-east quadrant.