Forrestania Resources is set to expand its Lake Johnston gold operations through the acquisition of Mantis Resources, adding key exploration licences and reinforcing its foothold in Western Australia's prolific gold belt.
- Acquisition of 100% of Mantis Resources for $235,000 in Forrestania shares
- Adds two exploration licences and one application licence near Lake Johnston
- Strategic expansion within the Southern Cross–Forrestania Greenstone Belt
- Completion contingent on due diligence, shareholder and ASX approvals, and Poseidon Nickel farm-in withdrawal
- Lake Johnston processing facility licensed through 2041, supporting long-term operations
Strategic Acquisition to Expand Gold Footprint
Forrestania Resources Limited (ASX – FRS) has announced a binding agreement to acquire Mantis Resources Pty Ltd, a move that significantly broadens its exploration footprint around the Lake Johnston gold processing hub. The deal, valued at $235,000 payable in Forrestania shares, brings two granted exploration licences and one application licence under Forrestania’s control, all situated within a highly prospective geological setting.
The acquisition aligns with Forrestania’s ongoing strategy to consolidate tenure in the Southern Cross–Forrestania Greenstone Belt, a region known for its rich Archaean gold deposits. By securing these licences, Forrestania not only expands its landholding but also enhances its potential to discover new gold resources adjacent to its existing operations.
Geological and Operational Context
The newly acquired tenements lie contiguous to Forrestania’s current holdings, within the Lake Johnston greenstone belt. This belt is part of the larger Yilgarn Craton, a world-class mineral province that hosts numerous significant gold deposits. The greenstone belt’s complex geology, featuring mafic-ultramafic sequences and banded iron formations, offers fertile ground for gold mineralisation.
Lake Johnston itself is a well-established operation, boasting a 1.5 million tonnes per annum processing circuit with flotation and comminution capabilities. The facility is supported by substantial infrastructure including workshops, laboratories, an airstrip, and accommodation, and is licensed to operate until 2041. This long-term processing base provides Forrestania with a solid platform to develop its expanding gold portfolio.
Conditions and Next Steps
The acquisition is subject to several conditions precedent, including satisfactory completion of financial, legal, and technical due diligence, shareholder and ASX approvals, and the withdrawal of a farm-in notice by Poseidon Nickel Limited. This last condition relates to a prior farm-in agreement on the Lake Johnston project, which must be resolved before completion.
Forrestania’s Chairman, David Geraghty, emphasised the disciplined approach to growth, highlighting the strategic nature of the acquisition and the alignment with the company’s exploration focus. The company has also lodged applications for additional exploration licences nearby, signalling a continued commitment to expanding its resource base.
Broader Implications for Forrestania
This acquisition marks a clear step forward in Forrestania’s ambition to build a substantial gold resource portfolio across Western Australia’s premier mining districts. By consolidating tenure around a fully permitted processing hub, Forrestania is positioning itself to unlock value through exploration success and potential future development.
Investors will be watching closely as the company progresses through the conditions precedent and begins exploration activities on the newly acquired tenements. The integration of Mantis’s licences could provide fresh targets and opportunities to extend the life and scale of the Lake Johnston operation.
Bottom Line?
Forrestania’s calculated expansion around Lake Johnston sets the stage for potential resource growth and long-term value creation.
Questions in the middle?
- What exploration results will emerge from the newly acquired tenements?
- How will the withdrawal of Poseidon Nickel’s farm-in notice impact the timeline?
- What are the potential production or resource upgrades following this acquisition?