First Au Agrees to Buy Ida Valley Gold Project From TechGen in Binding Deal
Key Takeaways
- TechGen Metals has signed a binding deal to sell 100% of the Ida Valley Gold Project, covering tenements E 29/1053 and E 36/1015, to First Au (ASX: FAU).
- First Au has already paid a A$100,000 cash Exclusivity Fee, with a further A$100,000 in FAU shares to follow at completion.
- The share leg is priced on the 15-day VWAP before the Completion Date, fixing the dollar value at A$100,000 while the share count floats.
- Completion depends on First Au's due diligence sign-off within 10 Business Days and any required shareholder or ASX approvals within 90 days.
- TechGen keeps its focus on copper, gold and antimony projects across WA, the NT and NSW.
Ida Valley Gold Project divested to First Au in binding deal
TechGen Metals Limited, through its wholly owned subsidiary Techgen BBG Pty Ltd (the Seller), has entered a binding Transaction Agreement with First Au Limited (ASX: FAU) (the Buyer) to divest 100% of the Seller’s interest in the Ida Valley Gold Project. The project comprises Tenements E 29/1053 and E 36/1015.
The headline numbers are a A$100,000 cash Exclusivity Fee, which the Buyer has already paid, plus A$100,000 worth of fully paid ordinary FAU shares. For TechGen, that means cash in hand and a listed equity stake in return for the project, while its stated focus stays on copper, gold and antimony projects in WA, the NT and NSW.
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Deal terms at a glance
The table below sets out the consideration and the asset as described in the Transaction Agreement summary. The announcement does not disclose the FAU share price or the number of shares to be issued.
| Component | Detail | Status |
|---|---|---|
| Exclusivity Fee | A$100,000 cash | Already paid |
| Share consideration | A$100,000 worth of fully paid ordinary shares in FAU, issued to the Seller (and/or its nominee) | Subject to conditions |
| Share pricing | Based on the 15-day VWAP up to, but excluding, the Completion Date | Set at completion |
| Asset | All of the Seller’s legal and beneficial interest in the Ida Valley Project | Subject to conditions |
TechGen states the Transaction Agreement otherwise contains terms and conditions considered standard for agreements of this nature.
What “VWAP-based share consideration” means for investors
VWAP stands for volume-weighted average price. It is the average price a stock traded at over a set period, giving more weight to prices where more shares changed hands.
Because the shares are priced on the 15-day VWAP up to, but excluding, the Completion Date, the dollar value is fixed at A$100,000 while the number of shares issued depends on FAU’s trading prices in that window.
What this tells you is that TechGen’s consideration is set in dollars at completion. After that, the value of its FAU stake will move with FAU’s share price.
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Conditions to completion and next steps
Completion is conditional upon, and subject to the satisfaction (or waiver, as permitted) of two material conditions:
- The Buyer notifies the Seller within 10 Business Days of the execution date that it is satisfied with the outcome of its due diligence on the Ida Valley Project.
- The Buyer has obtained any necessary shareholder approvals required under the Corporations Act or the ASX Listing Rules to complete the proposed Transaction (within 90 days of the execution date), and those approvals remain valid and in full force.
Both windows run from the execution date.
The takeaway is that the divestment is binding but not yet complete. The A$100,000 in FAU shares depends on these conditions being satisfied (or waived, as permitted).
TechGen is an Australian registered exploration company.
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