Forrestania Resources (ASX:FRS) has executed a formal sale agreement with Poseidon Nickel, a wholly owned subsidiary of Horizon Minerals (ASX:HRZ), satisfying a key condition of its acquisition of the Lake Johnston Project.
The parties have amended the original acquisition term sheet, with Forrestania having completed an initial $8 million payment to Poseidon.
The remaining $20 million in cash consideration, together with $5 million in Forrestania shares, is to be paid at completion, which is expected to occur following the company's shareholder meeting scheduled for Jan. 12, 2026.
In parallel, Forrestania has commenced early contractor involvement to support the conversion of the Lake Johnston processing facility from nickel to gold, engaging MBS Environmental for approvals and environmental works, OTOC Australia for non-process infrastructure, Polaris Engineering for process plant engineering, RG Mining Consulting for study management, geology and mine planning, and PwC for cost modelling, financial analysis, and capital and operating cost evaluation.
The acquisition includes Lake Johnston tenements, the processing plant, buildings and associated infrastructure, providing Forrestania with a pathway to assess potential future gold production from its existing JORC resources.
Chairman David Geraghty said the transaction marked a "transformational step" for the company, positioning Forrestania to progress from explorer to near-term gold producer.
At the time of reporting, Forrestania Resources' share price was $0.30.