en.Wedoany.com Reported - Australian gold, copper, and lithium explorer Forrestania Resources has entered into an agreement with Ramelius Resources to acquire all interests in the Edna May Gold Mine and its associated infrastructure in Western Australia's Wheatbelt region for a total consideration of A$300 million.

The transaction includes an Edna May processing plant with an annual capacity of 2.9 million tonnes, with the consideration comprising A$200 million in cash and A$100 million in Forrestania shares.

The acquisition will complement Forrestania's Lake Johnston processing hub, which is currently undergoing refurbishment, and advance the company's consolidation strategy focused on acquiring high-quality, advanced, and permitted gold assets.

Forrestania plans to restart the Edna May processing plant in the first half of next year, initially utilizing the company's existing nearby mineral resources for feed, before assessing the long-term restart potential of the Edna May mining operations.

To complete this acquisition, Forrestania is planning to raise financing.

The company already holds substantial tenements and resources around Edna May, and this acquisition will further build its dual processing hub network, enhance operational flexibility, and ensure ore can be matched to the most suitable processing plant.

Forrestania Chairman David Geraghty stated that the transaction implements the company's strategy to consolidate proven and prospective gold assets in the Forrestania region. Approximately 12 months ago, the company initiated an active M&A strategy to consolidate high-quality, dormant gold assets and underexplored tenements around Edna May.

This strategy laid the foundation for the Edna May acquisition, and the company believes the project has a mature development and delivery team ready to refurbish, upgrade, and commission the 2.9 million tonnes per annum Edna May processing plant. This work will proceed in parallel with the commissioning of Forrestania's Lake Johnston project, which is scheduled for completion by the end of 2026. Geraghty concluded that Forrestania is at a critical inflection point in its development, now possessing a growing resource base and processing infrastructure to execute its gold production strategy.