Forrestania Resources has agreed to acquire Catalina Resources’ Laverton Project, swapping its Breakaway Dam copper asset and gaining a significant equity stake in Catalina. This move strategically broadens Forrestania’s presence in the Eastern Goldfields gold belt.
- Binding asset swap agreement between Forrestania and Catalina Resources
- Acquisition of three Laverton exploration licences by Forrestania
- Divestment of Breakaway Dam copper project to Catalina
- Forrestania receives 13.8 million Catalina shares plus over 20 million options
- Transaction expands Forrestania’s Eastern Goldfields gold exploration hub
Strategic Expansion in the Eastern Goldfields
Forrestania Resources Limited (ASX, FRS) has taken a decisive step to bolster its gold exploration portfolio by entering into a binding asset swap agreement with Catalina Resources Limited (ASX, CTN). The deal will see Forrestania acquire three exploration licences that form the Laverton Project, a highly prospective gold region within the Eastern Goldfields, while divesting its Breakaway Dam copper asset to Catalina.
This transaction is more than a simple swap of tenements. Forrestania will receive approximately 13.8 million Catalina shares at a deemed price of 6.9 cents each, alongside over 20 million options exercisable over the next three years. This equity stake, initially around 10%, provides Forrestania with ongoing exposure to copper and gold upside through Catalina’s experienced exploration team and projects in the Yerilgee and Evanston greenstone belts.
Focusing on Core Gold Assets
The divestment of the Breakaway Dam Project, a copper and lithium exploration opportunity east of Menzies, reflects Forrestania’s strategic focus on gold assets within the Eastern Goldfields. The Breakaway Dam area, while geologically promising as a potential district-scale VMS copper province, is considered non-core to Forrestania’s evolving portfolio. Catalina, with its copper exploration expertise, is well positioned to advance this project.
Meanwhile, the Laverton Project licences acquired by Forrestania lie within a structurally significant and mineralised corridor known as the Barnicoat Shear Zone. This region hosts several notable gold deposits, including Mon Ami and Ida H, and benefits from proximity to established infrastructure and processing facilities, enhancing the development potential of the acquired tenements.
Transaction Conditions and Outlook
The completion of this asset swap is subject to several conditions, including due diligence by both parties, regulatory and third-party approvals, and Catalina shareholder consent for the share and option issuance. The agreement includes a termination clause if these conditions are not met by 5 May 2026, underscoring the importance of timely execution.
Forrestania’s Chairman, David Geraghty, emphasised the strategic nature of the transaction, highlighting how the Laverton tenements complement the company’s existing Eastern Goldfields footprint and align with its exploration priorities. The deal also allows Forrestania to maintain exposure to copper through its equity interest in Catalina, while focusing its direct efforts on gold exploration.
As Forrestania integrates the Laverton Project into its broader exploration strategy, the market will be watching closely for early results and progress updates that could validate the potential of this expanded gold hub.
Bottom Line?
Forrestania’s asset swap with Catalina marks a pivotal expansion in gold exploration, with execution and exploration results set to shape its next growth phase.
Questions in the middle?
- How will Forrestania prioritise exploration activities across its expanded Eastern Goldfields portfolio?
- What impact will the exercise of options have on Forrestania’s equity stake in Catalina over time?
- Can Catalina’s copper expertise unlock value at the Breakaway Dam project under its stewardship?