Alchemy Resources has finalised the sale of its Karonie and Lake Rebecca projects to Forrestania Resources, securing over 7.7 million shares and a royalty, while gearing up for copper exploration in New South Wales.
- Sale of Karonie and Lake Rebecca projects completed
- 7.7 million Forrestania shares received as consideration
- 1% net smelter royalty retained on mineral production
- Upcoming drilling at Yellow Mountain and Overflow copper projects
- 40% free-carried interest in Bryah Iron Ore joint venture
Completion of Karonie and Lake Rebecca Sale
Alchemy Resources (ASX:ALY) has wrapped up the sale of its Karonie and Lake Rebecca gold projects to Forrestania Resources (ASX:FRS), receiving 7,725,587 ordinary Forrestania shares as part of the deal. The transaction, first announced in March, fulfilled all conditions precedent and was completed as agreed, with the Forrestania shares expected to settle within two days of completion. Notably, Alchemy retains a 1% Net Smelter Royalty on minerals mined from the relevant tenements, excluding the first 110,000 ounces of gold from key deposits.
Chief Executive Officer James Wilson described the transaction as a "strong outcome for Alchemy shareholders," highlighting the non-dilutive nature of the funding and the ongoing financial flexibility it provides through the Forrestania shareholding and royalty retention.
Focus Shifts to NSW Copper Projects
With the sale finalised, Alchemy is sharpening its focus on its high-grade copper exploration assets in New South Wales, particularly the Yellow Mountain and Overflow Projects. Clearance surveys are slated to begin mid-May 2026, with drill program planning well advanced to target significant induced polarisation anomalies validated by prior drilling. These programs aim to unlock near-term exploration opportunities that could underpin the company’s growth trajectory.
These developments build on earlier indications of promising base metals and gold results at Yellow Mountain, where recent geophysical surveys identified strong anomalies, setting the stage for upcoming drilling campaigns. This momentum follows Alchemy’s strategic moves to advance its lithium and iron ore interests, including a binding agreement with Newcam Minerals for a majority stake in the Bryah Iron Ore Project.
Bryah Iron Ore Joint Venture Progress
In a related development, Newcam Minerals has exercised its option on the Valley Bore-Bryah Iron Ore project, with Alchemy retaining a 40% free-carried interest in the joint venture. This partnership is expected to accelerate project advancement with a well-funded operator driving near-term exploration milestones. The deal preserves upside exposure for Alchemy while mitigating development risk.
These moves collectively position Alchemy to capitalise on strong commodity themes across gold, copper, and iron ore, providing a diversified pipeline of options as the company navigates 2026.
Bottom Line?
Alchemy’s completed sale and retained royalty provide financial flexibility, while its NSW copper projects and Bryah JV offer promising exploration catalysts.
Questions in the middle?
- How will Forrestania Resources’ share price movements impact Alchemy’s financial position?
- What results will the upcoming Yellow Mountain and Overflow drilling programs deliver?
- How rapidly can Newcam Minerals advance the Bryah Iron Ore project milestones?