Forrestania completes A$300 million acquisition of Edna May gold mine

en.Wedoany.com Reported - On September 4, Forrestania Resources completed the acquisition of the Edna May gold project in Western Australia from Ramelius Resources, with a total consideration of A$300 million, comprising A$210 million in cash and 225 million Forrestania shares. The parties had signed a binding acquisition agreement on June 29, and the completion of this transaction means that Edna May Operations, Tampia Operations, and related exploration rights and contractual interests have been formally transferred to Forrestania.

The Edna May assets include a processing plant with a design capacity of approximately 2.9 million tonnes per annum, tailings facilities, accommodation camp, airstrip, and existing infrastructure such as grid power supply. The project hosts approximately 945,000 ounces of JORC gold resources, with historical cumulative gold production exceeding 1 million ounces. Forrestania plans to advance plant restart preparations following completion, targeting a recommissioning of the Edna May plant in the first half of 2027.

Forrestania is also concurrently advancing the refurbishment of the Lake Johnston processing facilities. Following the completion of the Edna May acquisition, the company now has two regional processing hubs; under current plans, the refurbished Lake Johnston facility will have a processing capacity of approximately 3.2 million tonnes per annum, which combined with Edna May's approximately 2.9 million tonnes per annum capacity, totals over 6 million tonnes per annum. During the initial phase of the Edna May restart, the company plans to first process ore from existing mineral resources in the vicinity, while continuing to evaluate longer-term mining options for the project itself.

This acquisition went through multiple rounds of transaction procedures. Forrestania entered Ramelius's Edna May asset sale process in March, submitted a non-binding offer on May 4, delivered a final binding offer on June 15, was notified on June 23 that it had been selected as the preferred bidder, and signed the A$300 million acquisition agreement on June 29. The company subsequently undertook an A$310 million equity raising to support the cash component of the transaction and related funding requirements.