Forrestania Resources (ASX:FRS) has bolstered its Western Australian gold portfolio, announcing the acquisition of a 100% interest in the Mt Palmer Project and two additional strategic hubs from Newcam Minerals.
Under two binding heads of agreement, the company will acquire all shares in Aurumin Mt Palmer, Aurumin Johnson Range, and Aurumin Mt Dimer.
The transaction consolidates Forrestania’s Southern Cross and Mt Dimer Hubs.
It increases the company's stake in Mt Palmer from 80% to full ownership, a move Technical Director Brett Hodgins says will "expedite project development" as the company targets gold production via its Lake Johnston facility.
The acquisition includes a vast package of mining leases and exploration licences across the prolific Southern Cross Greenstone Belt.
To fund the deal, Forrestania will issue approximately 50.8 million fully paid ordinary shares at a deemed price of $0.475 per share, representing a total value of roughly $24.2 million.
The agreement also includes milestone-based "top-up" payments of up to $2.4 million, contingent on future mineral resource estimate increases exceeding 88,000 ounces at the Mt Dimer and Johnson Range sites.
Newcam Minerals, an existing stakeholder, expressed confidence in the regional consolidation.
The deal remains subject to standard conditions, including due diligence and shareholder approval, with a completion deadline set for March 31.