82,700 Oz Burracoppin Gold Project Acquired by Forrestania for $700,000

Strategic Acquisition in WA’s Wheatbelt

Forrestania Resources Limited (ASX, FRS) has taken a decisive step to expand its gold portfolio by entering into a binding heads of agreement to acquire First Western Gold Pty Ltd, a wholly owned subsidiary of Askari Metals Limited (ASX, AS2). This acquisition grants Forrestania full ownership of the Burracoppin Gold Project, a strategically located asset in Western Australia’s wheatbelt region, approximately 27 kilometres west of Ramelius Resources’ Edna May Gold Mine.

The Burracoppin project is notable for its JORC 2012 Mineral Resource Estimate (MRE) of 2.14 million tonnes at 1.2 grams per tonne gold, equating to 82,700 ounces of gold at a 0.55 g/t cutoff grade. This resource, while modest compared to some larger operations, represents a valuable addition to Forrestania’s growing portfolio of gold assets in the Southern Cross region.

Deal Structure and Strategic Upside

The total consideration for the acquisition is $700,000, payable through a combination of cash and Forrestania shares. Additionally, subject to Askari Metals shareholder approval, Forrestania will receive 15 million listed options exercisable at 2.2 cents and 30 million unlisted options exercisable at 6 cents, providing equity-linked exposure to Askari’s African exploration projects, including the high-grade Nejo Gold and Copper Project in Ethiopia.

Forrestania’s Chairman, David Geraghty, highlighted the acquisition as a continuation of the company’s strategy to consolidate high-quality gold assets in the region. The company also lodged an application for an additional exploration license (E70/6753) to consolidate the Burracoppin project footprint, enhancing the continuity of prospective geology and potentially expanding the resource base.

Exploration Potential and Historical Context

The Burracoppin Gold Project comprises seven granted exploration licenses and one application, covering multiple mineralized zones including Benbur-Christmas Gift, Easter Gift, and Lone Tree. Historical and recent drilling, including 155 reverse circulation drill holes totaling over 11,000 meters, has confirmed gold mineralization across a 3-kilometre strike length. Notable drill intercepts include high-grade intervals such as 3 meters at 17.41 g/t gold from 73 meters depth.

The project area has a rich mining history dating back to the 1930s, with shallow shafts and small-scale production reported. The mineralization style is typical of Archean lode gold deposits, hosted in narrow, steeply dipping veins within a greenstone terrane. The resource remains open at depth and along strike, suggesting significant upside potential with further exploration.

Due Diligence and Next Steps

Completion of the acquisition is subject to Forrestania completing financial, legal, and technical due diligence, as well as obtaining necessary third-party approvals. The company expects to finalize the transaction by 20 December 2025. Forrestania’s move not only strengthens its position in Western Australia’s gold sector but also provides a foothold in Askari’s African projects through the option instruments, potentially diversifying its exposure to emerging high-grade deposits.

With the Burracoppin project’s proximity to a major producing mine and its substantial inferred resource, Forrestania is well positioned to advance exploration and potentially move toward development, pending further drilling success and regulatory approvals.