Forrestania Resources secures deal for 750,000 tonnes of ore
Key points
- Forrestania Resources entered a binding agreement to purchase and process up to 750,000 tonnes of gold ore over 24 months.
- The pricing formula links payments directly to ore grade, metallurgical recovery rates, and prevailing gold market prices.
- The deal advances company efforts to feed regional processing infrastructure ahead of scheduled production next month.
Forrestania Resources (ASX:FRS) signed a binding agreement to buy and process up to 750,000 tonnes of gold-bearing ore.
The 24-month arrangement secures third-party feed from Dundas Minerals (ASX:DUN) at the Rockland Gold Project on mining lease M24/974 in Western Australia.
“The initial agreement with Dundas Minerals complements Forrestania's strategy of building a diversified pipeline of ore supply opportunities around our processing infrastructure,” said Forrestania Executive Chairman David Geraghty.
Under the commercial terms, Dundas remains responsible for ore transportation costs, with purchase pricing tied directly to prevailing gold market prices.
Following the announcement, the Forrestania Resources share price was unchanged at $0.33.
The company stated that building this third-party pipeline will help maximise plant utilisation as operations advance toward production next month.
Forrestania described the granted Eastern Goldfields discovery as a key asset to leverage its processing hubs toward becoming a regional producer.
