Far East Gold (ASX:FEG) secures strategic investment

Far East Gold (ASX:FEG) has announced the execution of a conditional share placement agreement with Hsing Yip Gold (Hong Kong) Mine Company Limited for a strategic investment. The agreement targets over A$14 million investment for a 19.99% strategic stake in Far East Gold, with all tranches priced at A$0.20 per share, representing a 47% premium to the recent placement and share purchase plan and a 21% premium to the last traded price.

Executive Commentary

Far East Gold's Chief Executive Officer, Mr Shane Menere, expressed his satisfaction with the strategic investment, stating, 'This transaction marks the logical next step for FEG, following recent announcements around the pending Idenburg acquisition which triggered several approaches from strategic investors. We are delighted to welcome Xingye as a strategic partner because it ticks all our boxes significant funding, deep technical expertise and full alignment with our strategic goals for our portfolio of high-quality assets.' Xingye's Chief Executive Officer, Mr Shucheng Zhang, also commented, 'We are pleased to make this significant investment. 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.'

Summary

Far East Gold (ASX:FEG) has secured a strategic investment from Hsing Yip Gold (Hong Kong) Mine Company Limited for a 19.99% stake through a three-tranche conditional share placement agreement, targeting over A$14 million investment at A$0.20 per share. The Subscriber, a wholly owned subsidiary of Inner Mongolia Xingye Silver & Tin Mining Co., Ltd, a Chinese mining company listed on the Shenzhen Stock Exchange, will bring deep technical expertise and significant funding to assist in the progression of Far East Gold's portfolio of high-quality assets. The investment allows FEG to accelerate its portfolio development. The Subscriber will have the right to nominate one director for appointment to Far East Gold's board of directors, subject to FIRB approval and completion of Tranche 2. The Subscriber will also be restricted from dealing with the shares issued in each Tranche for 12 months from the date of issue. Far East Gold's CEO, Mr Shane Menere, and Xingye's CEO, Mr Shucheng Zhang, expressed their enthusiasm for the partnership, highlighting the alignment of strategic goals and competencies. The strategic investment is expected to propel Far East Gold towards achieving its strategic goals for its portfolio of high-quality assets.