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First Au to earn up to 80% interest in West Wits' Tambina gold project

West Wits Mining Ltd. subsidiary Tambina Gold Pty. Ltd. entered into an agreement allowing First Au Ltd. to earn up to an 80% interest in the three active mining leases forming the Tambina gold project in Western Australia.

First Au can earn the interest by subscribing to a placement of 20 million West Wits shares priced at 0.9 Australian cents apiece, paying A$60,000 in cash and spending A$500,000 on exploration over three years.

West Wits said March 13 that the initial cash consideration of A$240,000 will help accelerate the completion of mining license applications for its Witwatersrand Basin gold project in South Africa and development of the Kimberley East underground project.

Once First Au has earned an 80% interest in the project, the companies will contribute to costs based on their respective interests. First Au will serve as manager of the joint venture from the formation and throughout the earning phase.

West Wits completed the acquisition of the three Tambina mining leases in late January 2018.