Forrestania Issues 50.9 Million Shares to Secure 100% of Mt Palmer Project

• Acquisition of 100% shares in Aurumin Mt Palmer, Johnson Range, and Mt Dimer subsidiaries
• Issuance of approximately 50.9 million shares to Newcam Minerals valued at $24.16 million
• Consolidation of Forrestania’s strategic footprint in Southern Cross and Mt Dimer gold hubs
• Milestone payments linked to future resource estimate increases
• Supports expedited development and production from Lake Johnston processing facility

Strategic Consolidation in Western Australia

Forrestania Resources (ASX, FRS) has taken a decisive step to strengthen its foothold in Western Australia's prolific gold mining region by acquiring full ownership of the Mt Palmer project and surrounding tenements. This move follows the initial 80% stake obtained through the takeover of Kula Gold earlier this year, now extended to 100% through binding agreements with Newcam Minerals.

The acquisition encompasses shares in Aurumin Mt Palmer Pty Ltd, Aurumin Johnson Range Pty Ltd, and Aurumin Mt Dimer Pty Ltd, entities holding key mining leases and exploration licences across the Southern Cross and Mt Dimer hubs. These areas are known for their significant gold mineralisation potential, with the Southern Cross Greenstone Belt and the Marda-Diemals Greenstone Belt offering promising geological settings.

Consideration and Conditional Approvals

Forrestania will issue approximately 37.9 million fully paid ordinary shares to Newcam for the Mt Palmer acquisition, valued at a deemed price of $0.475 per share, amounting to $18 million. An additional 13 million shares, worth $6.16 million, will be issued for the Johnson Range and Mt Dimer acquisitions. These share-based payments align the interests of both parties and preserve Forrestania’s capital for advancing exploration and development.

Importantly, the agreements include milestone payments contingent on future increases in Mineral Resource Estimates, incentivising ongoing exploration success. Completion remains subject to due diligence, ASX and shareholder approvals, and other regulatory consents, with a deadline set for 31 March 2026.

Advancing Towards Production

Forrestania’s Technical Director Brett Hodgins highlighted the strategic advantage of sole ownership, noting that it enables the company to expedite project development and directly benefit shareholders. The Mt Palmer project is expected to be a key ore source feeding into the company’s Lake Johnston processing facility, acquired late last year, marking a significant step towards gold production.

Newcam Minerals, retaining a shareholder position in Forrestania, expressed optimism about the consolidation, viewing it as an important regional development that strengthens the overall project portfolio.

Regional Significance and Future Outlook

The Southern Cross and Mt Dimer hubs are situated within highly prospective greenstone belts known for their gold endowment. Forrestania’s expanded tenure now covers extensive mining leases and exploration licences, positioning the company to leverage geological synergies and scale exploration efforts efficiently.

As Forrestania moves to integrate these assets, the market will be watching closely for resource upgrades and progress towards production milestones. The share issuance dilutes existing shareholders but is balanced by the potential value uplift from a consolidated and fully controlled asset base.

Bottom Line?

Forrestania’s full control of Mt Palmer sets the stage for accelerated development, but upcoming approvals and resource milestones will be critical to watch.

Questions in the middle?

• Will Forrestania meet all regulatory and shareholder approvals by the March deadline?
• How soon can resource upgrades from the newly acquired tenements be expected?
• What impact will the share issuance have on Forrestania’s share price and investor sentiment?