Forrestania Resources to take full ownership of Mt Palmer gold project

Forrestania Resources has agreed to get the Aurumin Mt Palmer, Aurumin Johnson Range and Aurumin Mt Dimer subsidiaries from Newcam Minerals successful a determination to instrumentality afloat ownership of the Mt Palmer golden task successful Western Australia (WA).

This woody volition beryllium executed done the issuance of astir 37.9 cardinal mean shares successful Forrestania astatine A$0.475 per share, totalling A$18m ($12.5m).

Mt Palmer is located astir 15km eastbound of Marvel Loch successful the Shire of Yilgarn. Historically, it has been mined utilizing some open-pit and underground methods, producing astir 158,000oz of golden astatine an mean people of 15.9 grams per tonne (g/t).

Aurumin Mt Palmer holds a 20% involvement successful 1 mining lease and 3 exploration licences adjacent Forrestania's Southern Cross Hub. The remaining 80% is already held by Forrestania pursuing the takeover of Kula Gold.

In summation to the shares for Aurumin Mt Palmer, Forrestania volition contented astir 13 cardinal shares to get Aurumin Johnson Range and Aurumin Mt Dimer.

The Mt Dimer Hub lies wrong the Marda-Diemals Greenstone Belt of the Southern Cross Domain successful the Yilgarn Craton. This domain comprises greenstone belts flanked by granite formations and includes the Mt Dimer, Johnson Range and Mt Jackson task areas.

The agreements see milestone payments linked to aboriginal mineral assets estimates.

The transaction involves tenements specified arsenic mining lease M77/406 and exploration licences E77/2210, E77/2423 and E77/2668 successful the Southern Cross Hub, arsenic good arsenic assorted tenements successful the Mt Dimer Hub including mining leases M77/1263 and exploration licences E16/489 and E77/2560.

The acquisitions volition beryllium finalised upon afloat outgo utilizing the issued shares.

Forrestania method manager Brett Hodgins said: “This quality to get the remaining 20% involvement successful the Mt Palmer task allows FRS [Forrestania Resources] to expedite the task improvement with FRS shareholders present the sole beneficiaries. The Mt Palmer task volition beryllium a cardinal ore root arsenic FRS moves towards golden accumulation from the Lake Johnston processing facility.

“Importantly, further consolidation of tenure wrong the Mt Dimer Hub, the transaction operation aligns information with exploration and acquisition occurrence portion preserving capital, which tin beryllium assigned to advancing Forrestania’s accumulation ambitions crossed our portfolio of West Australian golden assets.”

Last month, Forrestania initiated a diamond drilling programme astatine its Forrestania Hub successful WA, specifically targeting the Lady Lila Project.

"Forrestania Resources to instrumentality afloat ownership of Mt Palmer golden project" was primitively created and published by Mining Technology, a GlobalData owned brand.