Skip to main content
Grafa
Mining
Forrestania Resources closes acquisition of Edna May Gold Project
Image for illustrative purposes only. Not a real photo.

Forrestania Resources closes acquisition of Edna May Gold Project

Share
  • Forrestania Resources (ASX:FRS) completed its acquisition of the Edna May Gold Project from Ramelius Resources.
  • Transaction consideration was satisfied via $219 million cash and $225 million Forrestania shares valued at $90 million.
  • The deal establishes a second Western Australian processing hub to support the company's regional production growth strategy.

Forrestania Resources (ASX:FRS) has finalised the acquisition of the Edna May Gold Project from Ramelius Resources (ASX:RMS) in a transaction valued at $300 million.

The purchase gives the business dual processing hubs across Western Australia following its prior acquisition of the Lake Johnston facility.

"Edna May provides Forrestania with a second established processing hub and an established platform from which to accelerate our transition to becoming a significant Western Australian gold producer," said Forrestania Resources Executive Chairman David Geraghty.

To finance the cash consideration of $210 million, the company completed Tranche 2 of its $310 million institutional placement to raise $215 million before costs.

Following the announcement, the Forrestania Resources share price was unchanged at $0.42.

The company acquired 100% of the issued capital in Edna May Operations and Tampia Operations alongside associated exploration licences.

Forrestania stated that the asset provides an established platform to accelerate its transition toward becoming a significant Western Australian gold producer.

Frequently asked questions