Forrestania Resources has agreed to acquire the Gibraltar tenement package in Western Australia’s Coolgardie region from Christopher Alan De Courcy Ryder and Lloyd George Holdings, a move that will consolidate Forrestania’s Coolgardie hub.
The acquisition consideration comprises AU$2.5 million in Forrestania shares.
Following an initial 15,000 ounces of JORC-compliant gold resources from any of the tenements, an additional consideration of AU$40,000 per 1,000 ounces of JORC resources will be payable.
This is to be capped at 150,000 ounces and payments will comprise 50 per cent cash and 50 per cent shares in Forrestania.
Forrestania Chairman David Geraghty said the acquisition “continues Forrestania’s disciplined strategy of consolidating prospective tenure around our Coolgardie Hub” with a focus on granted mining tenure.
“The transaction structure aligns consideration with exploration and acquisition success while preserving capital, which can be assigned to advancing Forrestania’s production ambitions across our portfolio of West Australian gold assets.”
Gibraltar’s tenement package includes mining leases M15/60 and M15/193 with an approved and operating Vat leaching and prospecting licence P15/6203, which are located within and adjacent to Forrestania’s Coolgardie hub.
The completion of the deal is conditional upon several conditions, including the completion of due diligence by Forrestania on the tenements, shareholder approval and third-party approvals.
If the conditions are not satisfied on or before March 31, then either Forrestania or the sellers may terminate the sale agreement.
