Forrestania Resources has consolidated its Western Australia gold interest after it agreed to acquire full ownership of the Mt Palmer project and additional interests in the Johnson Range and Mt Dimer area.
Forrestania agreed to acquire 100 per cent of the shares in Aurumin Mt Palmer Pty Ltd. from Newcam Minerals Pty Ltd. for a consideration of AU$18 million. Forrestania will issue 37,894,737 shares at an issue price of 47.5 cents per share to Newcam.
Additionally, Forrestania agreed to acquire 100 per cent of shares in Aurumin Johnson Range Pty Ltd. and Aurumin Mt Dimer Pty Ltd. for a consideration of 12,968,422 shares at an issue price of 47.5 cents per share for a total of AU$6.16 million.
Forrestania Technical Director Brett Hodgins said full ownership of Mt Palmer allows the company to expedite project development.
“The Mt Palmer project will be a key ore source as FRS moves toward gold production from the Lake Johnston processing facility,” Hodgins said.
“Importantly, further consolidation of tenure within the Mt Dimer hub, 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.”
The transaction expands Forrestania’s control over two operating hubs in Western Australia.
The acquisition is subject to certain conditions, including shareholder and regulatory approvals.
