Alchemy Resources (ASX:ALY) has entered into a binding agreement to sell its Karonie and Lake Rebecca Projects to Forrestania Resources (ASX:FRS) for a total consideration of $5 million.
The transaction will be settled through the issuance of Forrestania shares, with the price determined by the 10-day volume weighted average price as of the agreement date.
As part of the deal, Alchemy retains a 1% net smelter royalty on all minerals mined from the tenements, following an initial exemption on the first 110,000 ounces produced from the Parmelia, KZ5, and Taupo deposits.
CEO James Wilson characterised the divestment as a "significant strategic step" aimed at strengthening the company's balance sheet and sharpening management’s focus on high-growth assets.
By offloading these projects, Alchemy intends to redirect capital toward its Yellow Mountain and Overflow copper-gold projects in New South Wales.
Management believes Yellow Mountain has the potential to become a flagship exploration asset within a larger district-scale mineralised system.
Beyond its New South Wales interests, the company continues to hold the Valley Bore Iron Ore Project, currently under an option agreement with Newcam Minerals.
Alchemy also maintains a strategic lithium joint venture with the Japan Organisation for Metals and Energy Security.
The remaining assets are intended to position the company to capitalise on emerging commodity trends and provide a consistent pipeline of catalysts throughout 2026.