Kula Gold’s Mt Palmer Drilling Shines as Forrestania Nears Full Takeover
Kula Gold reports standout high-grade gold results from Mt Palmer, completes Wozi niobium drilling, and advances Westonia divestment amid Forrestania’s takeover nearing completion.
- High-grade gold intercepts at Mt Palmer project
- Maiden drilling program completed at Wozi Niobium project
- Westonia Project divested to Forrestania with upfront and contingent payments
- Forrestania acquires over 90% of Kula shares, moving to compulsory acquisition
- Kula expected to delist from ASX following takeover completion
Exploration Success at Mt Palmer
Kula Gold Limited has delivered a strong quarter with impressive drilling results from its Mt Palmer Gold Project, where it holds an 80% interest. Recent reverse circulation and diamond drilling programs have returned multiple high-grade gold intercepts, including standout assays such as 1.2 metres at 13.9 grams per tonne and 7 metres at 10.65 grams per tonne. These results reinforce the potential of the 3-kilometre El Dorado Gold Trend advancing at Mt Palmer, underpinning the project’s growing significance in Kula’s portfolio.
Wozi Niobium Project Drilling Complete
Meanwhile, Kula has completed its maiden drilling campaign at the Wozi Niobium Project, where it holds a 75% stake. The program aimed to test the continuity of a robust soil anomaly with niobium oxide grades exceeding 0.4%. A wholly owned subsidiary has been established to facilitate a potential strategic spin-off, contingent on the assay results, which remain pending. The company is also evaluating additional tenure in the region to support possible project expansion, signaling a longer-term commitment to this emerging asset.
Westonia Project Divestment and Corporate Developments
In a significant portfolio reshuffle, Kula divested its 100% owned Westonia Project to Forrestania Resources Limited. The transaction included an upfront cash payment of $500,000 and a deferred payment of $1 million, contingent on the discovery of a JORC-compliant mineral resource of at least 100,000 ounces of gold or equivalent. This divestment aligns with Kula’s strategic focus on its core assets and provides immediate and potential future cash inflows.
On the corporate front, Forrestania has advanced its takeover bid for Kula, acquiring over 90% of shares and initiating compulsory acquisition of the remaining shares. The bid offered a premium of approximately 41% over Kula’s recent trading price, reflecting Forrestania’s confidence in the combined entity’s prospects. Following compulsory acquisition, Kula’s shares are expected to be removed from the ASX official list by early February 2026, marking the end of its independent listing.
Financial Position and Outlook
As of 31 December 2025, Kula held $1.7 million in cash, having spent $1.3 million on exploration activities during the quarter. The company reported no mining or development activities in the period. With Forrestania’s takeover progressing, Kula anticipates continued support for its projects under new ownership, potentially accelerating development and exploration efforts.
Bottom Line?
With Forrestania’s takeover imminent, Kula Gold’s promising exploration results set the stage for a new chapter under consolidated ownership.
Questions in the middle?
- What will the pending assay results from the Wozi Niobium Project reveal about its commercial potential?
- How will Forrestania integrate and prioritise Kula’s Mt Palmer and Wozi projects post-acquisition?
- What impact will the Westonia Project divestment have on Kula’s and Forrestania’s future resource base?
