Forrestania Resources clears panel orders for takeover

• The Takeovers Panel issued orders that allow the takeover offer to proceed while requiring specific compliance steps.
• Forrestania Resources shares fell 5.26% to $0.36 following the announcement.
• The company aims to move towards gold production by early 2027 after completing its Edna May acquisition.

Forrestania Resources (ASX:FRS) confirmed it will comply with Takeovers Panel orders while continuing its takeover bid for Zenith Minerals (ASX:ZNC) after securing acceptances for 49.23% of Zenith shares.

The order follows a declaration of unacceptable circumstances regarding past Panel proceedings, though the ruling does not halt the takeover process.

"Importantly, reasons for accepting the offer have not changed, and with our acquisition of the transformational Edna May Gold Project now complete, accepting the offer from Forrestania is now more compelling for all Zenith shareholders," said Forrestania Resources Executive Chairman David Geraghty.

The company holds a relevant interest of 58.33% in Zenith shares, and shareholders will receive an updated supplementary bidder's statement to address Panel requirements.

Forrestania stated that its offer allows Zenith shareholders to swap exploration assets for an entity moving into gold production by early 2027.

Following the announcement, the Forrestania Resources share price was down at $0.36.

The company recently completed the acquisition of the Edna May Gold Project to expand its Western Australian mining portfolio.

The acquisition underpins the board's strategy to transform the explorer into an operational gold producer within the next year.