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.