VANCOUVER, British Columbia, July 23, 2002 (PRIMEZONE) -- First Au Strategies Corp. (TSX Venture Exchange:FAV) (the "Company") has revised its proposed Short Form Offering Document financing announced on June 26, 2002 as a direct result of changed market conditions and after consultation with its Agent, Canaccord Capital Corporation ("Canaccord"). The offering will now consist of up to 3,142,857 units at $0.35 per unit for gross proceeds of up to $1,100,000. Up to 2,000,000 units will be flow-through units and up to 1,142,857 will be non flow-through units. Each flow-through unit will consist of one flow-through common share and one transferable common share (non flow-through) purchase warrant ("Warrant"). Each non flow-through unit will consist of one non-flow through common share and two Warrants. Two Warrants will entitle the holder to purchase one additional common (non flow-through) share for a period of two years at a price of $0.45 in the first year and at a price of $0.55 in the second year. The offering remains subject to a minimum subscription of $800,000.
In consideration for its services, Canaccord will be paid a cash commission equal to 8.5% of the gross proceeds of the offering, a cash administration fee, and will receive a corporate finance fee payable in shares. In addition, the Company will grant to Canaccord an option to acquire that number of common shares (non flow-through) of the Company as is equal to 15% of the number of units sold under the offering. The option will be exercisable for a period of two years at an exercise price of $0.45 in the first year and at an exercise price of $0.55 in the second year. The Company has also agreed to pay all expenses reasonably incurred by Canaccord in connection with the offering.
The gross proceeds of the flow-through portion of the offering will be used to fund exploration programs on the Company's Casummit Lake Property in the Red Lake Mining Division in Northwestern Ontario and the Thorn Property in the Atlin Mining Division in Northwestern British Columbia. The proceeds of the non flow-through portion of the offering will be used to pay the expenses of the offering, including Canaccord's commission, and for general working capital.
For further information contact Kaare Foy, Chief Financial Officer at telephone 604 608 1766, fax 604 608 1744, e-mail oceanic@telus.net, or Robert Archer, P.Geo., Technical Director, at telephone 604 608 1766, fax 604 608 1744, e-mail robert_archer@telus.net.
ON BEHALF OF THE BOARD "Kaare G. Foy" Kaare G. Foy, Director and CFO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.