Hyden Project Acquisition Option Adds Nearly 300,000oz Gold to Forrestania
Forrestania Resources has signed a binding option agreement to acquire 100% of Hyden Project Holdings, adding nearly 300,000 ounces of gold resources in Western Australia to its portfolio. The move aligns with its strategy to expand in the Forrestania gold region, with a major drilling program planned.
- Binding option agreement to acquire 100% of Hyden Project Holdings
- Hyden Project hosts 297,000oz gold resource (JORC 2012)
- Two advanced open pit gold projects on granted mining lease
- Program of Work lodged for up to 15,000m drilling campaign
- Acquisition consideration of $15.2 million payable in cash and shares
Strategic Acquisition in a Historic Gold Region
Forrestania Resources Limited (ASX, FRS) has taken a significant step towards expanding its footprint in Western Australia's prolific Forrestania gold belt by signing a binding option agreement to acquire 100% of Hyden Project Holdings Pty Ltd (HPH). HPH owns the Hyden Project, which comprises two advanced open pit gold deposits; Lady Ada and Lady Magdalene; situated on a granted mining lease.
This acquisition aligns closely with Forrestania's strategic ambition to become a major player in the region, enhancing its exposure to high-potential gold targets. The Hyden Project boasts a combined Mineral Resource Estimate (JORC 2012) of 6.95 million tonnes at 1.3 grams per tonne gold, equating to approximately 297,000 ounces of contained gold.
Resource Details and Exploration Upside
The two deposits, Lady Ada and Lady Magdalene, are typical Archean shear-hosted, narrow-vein orogenic gold systems. Lady Ada has an indicated and inferred resource totaling around 60,000 ounces, while Lady Magdalene holds a larger resource of approximately 237,000 ounces. Both deposits lie within mining lease M77/1310, providing a secure tenure base for development.
Forrestania has lodged a Program of Work for up to 15,000 meters of infill and exploration drilling aimed at upgrading resource confidence and testing extensions along strike and at depth. The company also holds the nearby Lady Lila prospect, which has shown promising high-grade intercepts and remains open for further exploration.
Acquisition Terms and Conditions
The total consideration for the acquisition is $15.2 million, payable in three tranches over the next two years, with Forrestania having the option to pay up to 50% of each tranche in shares. Additionally, Forrestania will issue 15 million options exercisable at 22 and 32 cents respectively, with a three-year expiry. Royalties of 1% and 1.5% net smelter returns remain in place over the tenements.
Completion is subject to standard conditions including ASX confirmation that the acquisition will not trigger re-compliance with listing rules, any necessary ASX and shareholder approvals, satisfactory due diligence on liabilities, and confirmation of unencumbered title to the tenements.
Legal and Operational Considerations
The announcement also discloses ongoing legal proceedings involving Classic Minerals Ltd and West Australian Prospectors Pty Ltd concerning the tenements. Forrestania acknowledges these disputes but maintains confidence in the project's tenure and resource estimates, which are based on the recent 2024 resource upgrade by Classic Minerals.
Forrestania’s Chairman David Geraghty highlighted the acquisition as a “significant” milestone that supports the company’s growth strategy and exploration success in the Forrestania region.
Looking Ahead
With completion expected by the end of October 2025, Forrestania Resources is poised to integrate the Hyden Project into its portfolio and commence an extensive drilling campaign. This development could materially enhance the company’s resource base and operational prospects in a region known for its rich gold endowment.
Bottom Line?
Forrestania’s acquisition option on Hyden sets the stage for a potential resource expansion and deeper regional influence, but legal uncertainties and drilling outcomes will be key to watch.
Questions in the middle?
- Will Forrestania exercise the option and complete the acquisition by October 2025?
- How will the planned 15,000m drilling campaign impact resource confidence and size?
- What are the potential implications of the ongoing legal disputes on project development?
