First Au has agreed to sell its 30% legacy interest to Octava for A$200,000 cash, 1.2 million shares and a 0.75% royalty.

 

First Au originally listed on the project, but later struck an agreement for Octava to earn 80% by spending up to $900,000 over three years. It would be free carried for 20% until a decision to mine. 

 

Octava has so far earned 70%. 

 

The project in the eastern Pilbara is close to Global Lithium Resources' 18 million tonne at 1% Archer lithium deposit and has the same Archean greenstone stratigraphy as Calidus Resources' Warrawoona gold project.

 

Recent work has defined the presence of pegmatites just 10km north of Archer, with recent soil sampling suggesting the presence of lithium at the Pinnacle Well and Nimerry prospects.

 

Drilling is expected to begin soon. 

 

First Au aims to target its Haunted Stream project in Victoria and the Gimlet gold project near Kalgoorlie, WA.

 

Octava shares were up 11% at 7.8c today, valuing it at $3.6 million.