Forrestania to expand processing footrint with A$300m buyout of nearby Edna May gold hub
Australian gold, copper and lithium explorer Forrestania Resources has agreed to acquire 100% of the Edna May gold mine and associated infrastructure, in the Western Australian Wheatbelt, from Ramelius Resources for a total consideration of A$300-million.
The deal, which includes the 2.9-million-tonne-a-year Edna May Mill, will comprise a A$200-million cash consideration and A$100-million in Forrestania shares.
The acquisition complements Forrestania's existing Lake Johnston processing hub, which is currently undergoing refurbishment, and advances the company's consolidation strategy that is focused on securing high-quality, advanced and permitted gold assets.
Forrestania plans to restart the Edna May Mill during the first half of next year, with Forrestania to supply the plant with ore from its existing proximate mineral resources, prior to assessing any longer-term restart of mining operations at Edna May.
Forrestania is planning a capital raise to complete the acquisition.
The company already holds a significant tenure and resources around Edna May, with the acquisition building out on the company's dual processing hub-and-spoke network, increasing Forrestania's operational flexibility and ensuring the right ores go to the right mill.
"This transaction upholds Forrestania’s strategy to consolidate the proven and prospective gold assets in the Forrestania region. About 12 months ago, Forrestania embarked on an aggressive merger and acquisition strategy to consolidate stranded high-quality gold assets and underexplored tenure surrounding Edna May.
"This strategy has been incredibly successful and set Forrestania up for Edna May’s acquisition. We believe [the project] has the proven development and delivery team that is ready to refurbish, upgrade and commission the 2.9-million tonnes Edna May Mill going forward," says Forrestania chairperson David Geraghty.
This work will be completed in conjunction with Forrestania’s commissioning of Lake Johnston which is on track for late 2026.
"Forrestania is at an exciting juncture as it now has the growing resource base and the processing infrastructure to deliver on its gold production strategy," Geraghty concludes.
