What are the terms of the deal between Midas Minerals (ASX:MM1) and Forrestania Resources (ASX:FRS)?

Midas Minerals is selling its 212km2 Newington Project in Western Australia to Forrestania Resources. Midas will receive an upfront consideration of $1.5 million in Forrestania (ASX:FRS) shares, priced using a five-day volume-weighted average price.

What are the specific deferred milestone payments Midas Minerals (ASX:MM1) could receive?

The deferred consideration consists of three main performance milestones tied to the Newington Project. Midas will receive $1 million once Forrestania delineates or extracts an initial 50,000 ounces of gold, and $200,000 for every subsequent 10,000 ounces.

Why is Midas Minerals (ASX:MM1) selling the Newington Project?

Midas Minerals is divesting the asset to streamline its portfolio and sharpen its operational focus on its flagship Otavi Copper-Gold Project in Namibia.

What is the current exploration scale at the Midas Minerals (ASX:MM1) Otavi project?

Midas Minerals is currently running an aggressive five-rig drilling programme at the Otavi Copper-Gold Project in Namibia. The active drilling is spread across three key project targets, specifically the T-13, Deblin, and Spaatzu deposits.

What are the existing resource metrics for the Otavi Copper-Gold Project?

The Otavi project in Namibia holds an initial Mineral Resource Estimate (MRE) of 10.5 million tonnes (Mt) grading at 1.6% copper and 21g/t silver.

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Midas Minerals sells Newington Project in $1.5M deal

Written by Isaac FrancisPublished May. 25 2026

Midas Minerals (ASX:MM1) has executed a binding heads of agreement to sell its Newington Project in Western Australia to Forrestania Resources (ASX:FRS).

The sale of the 212km2 gold and lithium prospective tenements will allow Midas to focus its resources on its flagship Otavi Copper-Gold Project in Namibia.

Under the terms of the agreement, Midas will receive upfront consideration consisting of FRS shares valued at $1.5 million, determined by a five-day volume-weighted average price.

The deal also includes deferred, milestone-based payments, totally elected in cash or shares by Forrestania.

The milestones include $1 million upon the delineation or extraction of an initial 50,000 ounces of gold, $200,000 for each subsequent 10,000 ounces, and an additional $1 million upon a formal decision to mine any of the tenements.

Proceeds and management focus will be redirected toward the Otavi project, where Midas is currently running a five-rig drilling programme across the T-13, Deblin, and Spaatzu deposits.

The Namibian project holds an initial mineral resource estimate of 10.5Mt at 1.6% copper and 21g/t silver, and the company remains on track to deliver an updated resource estimate for the T-13 deposit later in 2026.

The transaction is expected to close shortly, subject to customary regulatory and third-party approvals.