Forrestania Resources Acquires Edna May Gold Hub, Targets 2027 Mill Restart
Forrestania Resources is set to acquire the Edna May Gold Hub from Ramelius Resources for A$300 million, including a 2.9Mtpa mill and a 945,000-ounce gold resource, aiming to restart processing by mid-2027.
- A$300 million acquisition includes cash and shares
- Edna May Mill capacity at 2.9Mtpa with refurbishment planned
- 945,000-ounce JORC gold resource included
- Dual processing hubs with Lake Johnston enhance operational flexibility
- Capital raising underway to fund cash component
Strategic Acquisition Expands Forrestania’s Gold Processing Footprint
Forrestania Resources Ltd (ASX:FRS) has agreed to acquire the Edna May Gold Hub from Ramelius Resources Limited for a total consideration of A$300 million, combining A$200 million in cash and A$100 million in Forrestania shares. This deal brings under Forrestania’s control a 2.9 million tonnes per annum (Mtpa) processing plant, associated infrastructure, and a substantial 945,000-ounce JORC-compliant gold resource.
The acquisition complements Forrestania’s existing Lake Johnston processing hub, currently undergoing refurbishment and on track for commissioning in late 2026. Together, these assets establish a dual hub-and-spoke network, boosting operational flexibility and positioning Forrestania to target over 6Mtpa milling capacity by the first half of 2027.
Edna May Mill Restart and Operational Plans
Forrestania is targeting a restart of the Edna May Mill in the first half of 2027. Initially, the company plans to supply the mill with ore from its nearby Mineral Resources, deferring any longer-term mining restart decisions at Edna May until further assessment. The Edna May Mill, commissioned in 2010 and placed on care and maintenance in April 2025, has a strong operational track record and is designed for a conventional carbon-in-leach (CIL) process with a current capacity of 2.9Mtpa, expandable to 3.2Mtpa.
The acquisition includes extensive infrastructure such as a 185-room accommodation village, airstrip, tailings storage facility, and grid power connection, alongside mining leases and tenements covering approximately 1,000 square kilometres in the prolific Westonia Greenstone Belt of Western Australia.
Robust Mineral Resource Backing and Geological Credentials
The Edna May project boasts a significant Mineral Resource Estimate (MRE) of 30.7 million tonnes at 1.0 g/t gold, equating to 945,000 ounces, based on a 0.5 g/t cut-off grade. This resource is supported by extensive drilling data and geological modelling, with confidence levels ranging from Measured to Inferred categories. The deposit is structurally controlled within metamorphosed granitoid gneiss and features both high-grade quartz reefs and stockwork veining.
Independent review by Widenbar and Associates confirms the robustness of the resource model, which aligns with historical production exceeding one million ounces from the Edna May operation and associated satellite deposits including Tampia and Symes.
Capital Raising and Transaction Conditions
To fund the A$200 million cash component, Forrestania has initiated a capital raising of approximately A$300 million, managed by Bell Potter Securities and Aitken Mount Capital Partners. Completion of the acquisition, expected in the third quarter of calendar year 2026, remains subject to several conditions including regulatory approvals, notably from the Australian Competition and Consumer Commission (ACCC), assignment of third-party agreements, successful equity raising, and shareholder approvals.
Ramelius Resources will become a substantial shareholder in Forrestania, with their shares escrowed for 18 months. Forrestania retains flexibility to adjust the cash and share split post-capital raising, potentially increasing the cash portion and reducing shares issued.
Consolidation Strategy and Regional Synergies
This acquisition is a cornerstone of Forrestania’s aggressive consolidation strategy within Western Australia’s gold districts. The company has rapidly built a portfolio of high-quality assets, including the recently upgraded Lady Lyla and MacPhersons deposits, which have collectively pushed its global JORC-compliant gold resource base beyond one million ounces. Forrestania’s approach focuses on acquiring advanced, permitted assets with existing infrastructure to accelerate production timelines and reduce capital intensity.
By integrating Edna May with its Lake Johnston hub, Forrestania enhances its capacity to optimise ore feed and processing, unlocking a lower-risk, more capital-efficient pathway to production in the Southern Cross region. This network also provides operational flexibility to respond to varying ore grades and market conditions.
Bottom Line?
Forrestania’s Edna May acquisition marks a significant step in scaling its processing capacity and regional footprint, but execution hinges on successful capital raising and regulatory clearance in the coming months.
Questions in the middle?
- Will Forrestania’s capital raising meet the A$200 million target to secure completion?
- How swiftly can Forrestania refurbish and commission the Edna May Mill alongside Lake Johnston?
- What is the timeline and criteria for potential longer-term mining restarts at Edna May?
