Forrestania Invests $4.1M for 19.9% of OzAurum Shares at 7.2 Cents

Strategic Investment Bolsters Eastern Goldfields Exposure

Forrestania Resources Limited (ASX, FRS) has taken a significant step to expand its presence in Western Australia’s prolific gold mining region by acquiring a 19.9% stake in OzAurum Resources Ltd (ASX, OZM). The A$4.1 million investment, executed through a placement of nearly 57 million shares at 7.2 cents each, positions Forrestania as a strategic cornerstone investor in OzAurum’s near-term development plans.

This move is more than a simple capital injection; it reflects Forrestania’s disciplined approach to portfolio growth, focusing on high-quality gold projects with clear development pathways. OzAurum’s James Stage 1 Open Pit within the Mulgabbie North Project offers such an opportunity, with recent high-grade drilling results underpinning confidence in the project’s potential.

Capitalising on Near-Term Development Prospects

The James Stage 1 Open Pit is a heap leach development project situated in the Eastern Goldfields, a region renowned for its rich mineral endowment. Forrestania’s investment supports OzAurum’s advancement of this project, which aims to leverage the recent drilling success to move towards production. The strategic timing of the placement, priced at OzAurum’s 10-day volume-weighted average price, suggests a mutual confidence in the project’s valuation and prospects.

Forrestania’s Executive Chairman, David Geraghty, emphasised the alignment of this investment with the company’s broader strategy, “This investment reflects our strategy of building exposure to high-quality gold development opportunities in Western Australia through disciplined and selective capital deployment.” The partnership signals a vote of confidence in OzAurum’s management and technical team as they progress the Mulgabbie North Project.

Strategic Expansion in Western Australia’s Premier Gold Belts

Forrestania’s footprint already spans key mining districts including Southern Cross, Forrestania, and the Eastern Goldfields. This latest investment complements its existing portfolio, which is focused on unlocking value through exploration and development in proven mineralised belts. The company’s approach balances selective acquisitions with organic growth, aiming to build a pipeline of projects capable of supporting long-term development.

OzAurum, meanwhile, continues to pursue its objective of advancing gold projects in Western Australia and exploring opportunities in Brazil. Forrestania’s stake not only provides capital but also potentially strategic support as OzAurum navigates the next phases of project development.

Looking Ahead

Settlement of the share placement is expected imminently, setting the stage for Forrestania to play an active role in OzAurum’s journey. Investors will be watching closely for updates on the James Stage 1 Open Pit’s progress and any further collaboration between the two companies that could accelerate value creation.