Forrestania Resources (ASX:FRS) has entered into a strategic investment agreement to acquire a 19.9% interest in OzAurum Resources (ASX:OZM), expanding its footprint in Western Australia's Eastern Goldfields.
Under the placement, Forrestania will subscribe for 56.9 million new OzAurum shares at $0.072 per share, totaling $4.1 million.
The issue price aligns with OzAurum’s 10-day volume-weighted average price as of Jan. 28, with settlement expected around Feb. 2.
This cornerstone investment provides Forrestania with exposure to near-term gold development at the Mulgabbie North Project.
Proceeds will support OzAurum's heap leach development activities at the James Stage 1 Open Pit, a site recently bolstered by high-grade grade control drilling results.