Forrestania Resources has taken a strategic 19.9% stake in OzAurum Resources, marking a significant step in expanding its footprint in Western Australia's Eastern Goldfields gold sector. The investment supports OzAurum’s near-term development plans at the James Stage 1 Open Pit within the Mulgabbie North Project.
- Forrestania acquires 19.9% of OzAurum via a $4.1 million share placement
- Placement involves 56.9 million shares at $0.072 each, reflecting recent market pricing
- Investment aligns with Forrestania’s strategy to expand gold assets in Western Australia
- OzAurum advancing heap leach development at James Stage 1 Open Pit, Mulgabbie North
- Strategic move enhances exposure to Eastern Goldfields’ near-term gold development
Strategic Investment Bolsters Eastern Goldfields Exposure
Forrestania Resources Limited (ASX, FRS) has announced a significant strategic investment in OzAurum Resources Ltd (ASX, OZM), acquiring a 19.9% stake through a placement of 56.9 million shares at $0.072 each. This $4.1 million injection not only strengthens Forrestania’s portfolio but also signals confidence in OzAurum’s advancing gold development projects in Western Australia’s Eastern Goldfields region.
The placement price was set in line with OzAurum’s 10-day volume weighted average price (VWAP) to close on 28 January 2026, underscoring a fair market valuation. Settlement and share issuance are expected imminently, around 2 February 2026.
Backing Near-Term Development at Mulgabbie North
OzAurum’s James Stage 1 Open Pit within the Mulgabbie North Project is the focal point of this investment. The company is progressing heap leach development activities, supported by recent high-grade grade control drilling results that reinforce the project’s development pathway. Forrestania’s Executive Chairman David Geraghty highlighted the opportunity to gain exposure to a high-quality gold development story with clear near-term potential.
This move fits neatly into Forrestania’s broader strategy of disciplined expansion through selective acquisitions and strategic investments. By securing a substantial stake in OzAurum, Forrestania is positioning itself to benefit from the anticipated growth and value creation as OzAurum advances its project towards production.
Expanding Footprint in Western Australia’s Premier Gold Belts
Forrestania’s investment also reflects its commitment to building a diversified portfolio across proven mineralised belts in Western Australia, including the Southern Cross, Eastern Goldfields, and Forrestania regions. The company is actively advancing exploration and development initiatives, aiming to unlock the broader potential of these highly prospective gold districts.
OzAurum, meanwhile, continues to develop its advanced projects not only in Western Australia but also holds interests in Brazil, targeting niobium and rare earth elements. However, it is the Western Australian gold assets that currently attract Forrestania’s strategic focus.
As both companies move forward, the partnership could accelerate the development timeline and enhance the value proposition for shareholders on both sides.
Bottom Line?
Forrestania’s stake in OzAurum marks a calculated step into a promising gold development, with eyes on near-term progress and long-term value in the Eastern Goldfields.
Questions in the middle?
- What are the detailed timelines and milestones for OzAurum’s heap leach development at James Stage 1?
- How will Forrestania’s strategic stake influence OzAurum’s operational and financing decisions going forward?
- What are the potential risks or challenges that could delay or impact the development of the Mulgabbie North Project?