Far East Gold Ltd has received the final subscription of A$4,783,449.60 from strategic investor Xingye Gold Hong Kong Mining Company Limited taking the total investment to $14,673,757.60.
As a result, Xingye now holds a 19.99% strategic stake in the company, which is now well-funded to execute its 2025 exploration plans across its portfolio of projects with a major focus on the four potential Tier-1 assets.
A turning point
FEG chief executive officer Shane Menere said: “This transaction represents a significant milestone and turning point in the FEG story. It’s the logical next step and catalyst to unlocking asset value.
"The recent Idenburg acquisition triggered several approaches from strategic investors and we found alignment with Xingye as the standout partner to develop the assets together.
"We are delighted to welcome Xingye as our strategic partner and excited about what 2025 will bring.”
READ: Far East Gold attracts major Chinese miner Xingye as strategic partner with A$14 million investment
All three tranches were priced at A$0.20 per share, representing a 47% premium to the July and August 2024 placement and share purchase plan.
The directors of FEG consider this strategic investment by Xingye to be a key component in executing its exploration strategies and unlocking value within its portfolio.
Shane Menere has released a video discussing this announcement. Watch the video here: https://investorhub.fareast.gold/link/XyO4ke
A perfect fit
“We are pleased to make this significant investment," Xingye chief executive officer Shucheng Zhang said.
"Far East Gold’s portfolio represents a perfect fit for Xingye’s competencies around bringing highest-quality greenfield projects all the way through to production.
"We are looking forward to working closely with the Far East Gold team to achieve this.”