Forrestania Resources Ltd. will acquire full ownership of the Newington gold project from Midas Minerals Ltd., expanding its footprint along the gold-rich Southern Cross Greenstone Belt in Western Australia.
The transaction will see Forrestania take over Midas Minerals (Newington) Pty Ltd. for an upfront consideration of AU$1.5 million.
The deal is structured as an all-scrip acquisition, to be completely satisfied through the issuance of Forrestania ordinary shares using the company’s existing ASX placement capacity.
By avoiding an upfront cash payment, the explorer preserves its immediate capital reserves to fund upcoming field operations.
The long-term outlook for the asset is heavily incentivised by success, with deferred milestone payments only kicking in as the project hits tangible resource definition and mining development goals.
The company believes the acquisition provides further optionality within its broader Western Australian gold portfolio and complements Forrestania’s ongoing strategy of building a pipeline of exploration, resource growth and future development opportunities.
Spanning roughly 212 square kilometres, the Newington project area sits 90 kilometres north of Southern Cross and covers an extensive 33-kilometre strike length. The region is highly regarded for its robust historical gold production. It comes equipped with substantial existing drill intercepts across granted mining leases, alongside several historical workings that have never been subjected to modern drill testing.
Forrestania Resources Chairman David Geraghty highlighted the acquisition as a major milestone for the company’s broader Western Australian growth pipeline.
“The Newington acquisition represents another important step in Forrestania’s strategy of securing quality gold opportunities across Western Australia through disciplined and shareholder-aligned transaction structures,” Geraghty said.
“Importantly, the acquisition preserves capital while securing a strategic tenure package with exploration upside and milestone-linked consideration tied to project success.”
The transaction’s deferred consideration includes an AU$1 million payment upon either delineating a JORC-compliant mineral resource or extracting an initial 50,000 ounces of gold, followed by incremental payments for additional resource growth.
A final AU$1 million will be triggered if a formal decision to mine is announced.
Forrestania retains the flexible option to settle these future payments in either cash or shares.
