Forrestania Resources (ASX:FRS) has moved to strengthen its Coolgardie Hub in Western Australia by entering a binding heads of agreement to acquire rights, title, and interests in tenements from Christopher Alan De Courcy Ryder and Lloyd George Holdings (Gibraltar).
The acquisition, which includes mining leases M15/60 and M15/193 and prospecting licence P15/6203, is valued at $2.5 million in Forrestania shares, based on the five-day volume-weighted average price prior to the agreement.
Additional payments of $40,000 per extra 1,000 ounces of JORC-compliant gold resources, capped at 150,000 ounces, will be made 50% in cash and 50% in shares.
Gibraltar will also receive a 1% gross revenue royalty on gold production, payable after 150,000 ounces are mined.
The tenements, historically mined since the 1920s, contain numerous low-grade stockpiles and are strategically located near Forrestania's existing processing infrastructure, supporting the company's regional growth strategy.
Chairman David Geraghty said the acquisition aligns consideration with exploration success while preserving capital for advancing Forrestania's production ambitions across its West Australian gold assets.
Completion is subject to due diligence, shareholder approval, and other standard conditions precedent, with a deadline of March 31.
At the time of reporting, Forrestania Resources' share price was $0.48.