Forrestania Secures Edna May Gold Hub for A$300 Million with 2027 Mill Restart Target
Forrestania Resources is set to acquire Ramelius Resources’ Edna May Gold Hub for A$300 million, aiming to restart the 2.9Mtpa Edna May mill by mid-2027 and expand its processing capacity.
- A$300 million acquisition including cash and shares
- Edna May mill restart targeted in 1H 2027
- Adds 945koz Au JORC resource to Forrestania portfolio
- Dual processing hubs with Lake Johnston mill
- Ramelius to become substantial Forrestania shareholder
Strategic Acquisition Expands Forrestania’s Processing Footprint
Forrestania Resources Ltd (ASX:FRS) has agreed to acquire the Edna May Gold Hub from Ramelius Resources Limited (ASX:RMS) for a total consideration of A$300 million. The deal, comprising A$200 million in cash and A$100 million in Forrestania shares, marks a significant step in Forrestania’s disciplined consolidation strategy to build a multi-asset gold production platform in Western Australia.
The acquisition includes the 2.9 million tonnes per annum (Mtpa) Edna May mill, associated infrastructure, and a substantial JORC-compliant Mineral Resource of 945,000 ounces of gold. Forrestania plans to refurbish and restart the Edna May mill by the first half of 2027, supplying it initially with ore from its nearby mineral resources before considering a longer-term mining restart at Edna May.
Edna May Mill Complements Lake Johnston Hub
The Edna May mill acquisition complements Forrestania’s existing Lake Johnston processing hub, which is currently undergoing refurbishment and on track for commissioning in late 2026. Together, these assets will establish a dual hub-and-spoke processing network, boosting Forrestania’s operational flexibility and targeting over 6 Mtpa of milling capacity by mid-2027.
This network is designed to optimise ore routing, ensuring the right ore is processed at the right facility, and represents a lower-risk, capital-efficient pathway to production in the Southern Cross region. Forrestania’s chairman, David Geraghty, highlighted the company’s proven development team and the strategic value of consolidating high-quality, permitted gold assets in the region.
Transaction Details and Conditions
The A$300 million consideration is split into a minimum A$200 million cash component, including a A$20 million deposit paid upfront and A$180 million payable on completion, and up to A$100 million in Forrestania shares, which will be escrowed for 18 months. Forrestania retains the option to increase the cash portion and reduce the share issuance depending on the outcome of its ongoing equity raising.
Completion is expected in the September quarter of 2026, contingent on Forrestania securing at least A$200 million in binding equity commitments, shareholder approval for the share issuance, customary third-party consents, and potentially Australian Competition and Consumer Commission (ACCC) approval.
Ramelius Retains Exposure via Substantial Shareholding
Ramelius, which acquired Edna May in 2017 and produced approximately 760,000 ounces of gold from the operation through to 2025, will become a substantial shareholder in Forrestania post-completion. This equity stake provides Ramelius with ongoing exposure to Edna May’s potential upside as Forrestania advances the mill restart and regional consolidation.
Ramelius managing director Mark Zeptner described the transaction as logical and value-accretive, allowing Ramelius to crystallise value from a non-core asset and focus on its core Mt Magnet and Rebecca-Roe projects.
Robust Resource Base and Established Infrastructure
The Edna May Gold Hub comprises not only the mill but also granted mining leases, regional tenements covering approximately 1,000 square kilometres, and satellite projects including Tampia and Symes. The 2.9 Mtpa conventional carbon-in-leach (CIL) processing plant, commissioned in 2010, has demonstrated a strong operational track record and is capable of expansion to 3.2 Mtpa.
The JORC Mineral Resource estimate, prepared by Ramelius and independently reviewed, reports 30.7 million tonnes at 1.0 g/t gold for 945,000 ounces at a 0.5 g/t cutoff. The resource spans measured, indicated, and inferred categories, providing Forrestania with a substantial foundation for future development and production.
Capital Raising to Fund Acquisition
Forrestania is currently undertaking a two-tranche placement to raise approximately A$300 million to fund the cash component of the acquisition, supplemented by existing cash reserves. Bell Potter Securities and Aitken Mount Capital Partners are joint lead managers for the equity raising, which is expected to conclude by early July 2026.
The transaction and capital raising position Forrestania at an exciting inflection point, with growing resource bases and processing infrastructure ready to underpin its gold production ambitions in Western Australia.
Bottom Line?
Forrestania’s acquisition sets the stage for a near-term production boost, but execution risks around the mill refurbishment and equity raising remain key factors to watch.
Questions in the middle?
- Will Forrestania successfully complete its A$300 million equity raising on schedule?
- How quickly can Forrestania restart the Edna May mill and ramp up production?
- What are the prospects for extending mining operations beyond supplying existing Forrestania resources?
