Forrestania Expands Bonnie Vale with Multi-License Acquisition Near Ada Ann Prospect

Strategic Land Consolidation in Coolgardie

Forrestania Resources Limited (ASX, FRS) has taken a decisive step to bolster its presence in Western Australia's prolific goldfields by acquiring multiple prospecting and mining licenses near Jaurdi Hill. This move expands the company's Bonnie Vale Project footprint, located approximately 22 kilometres northwest of its existing Ada Ann prospect, reinforcing its strategic position within the Coolgardie region.

The acquisition involves three separate binding agreements to purchase 100% ownership of Australian Live-Stock Pty Ltd, Fenton and Martin Mining Developments Pty Ltd, and Diggers & Dealers Mining Pty Ltd. Collectively, these entities hold a portfolio of highly prospective tenements, including both granted licenses and pending applications, that complement Forrestania’s existing landholdings.

Performance-Linked Deal Structure

Notably, the deal is structured to align payments with exploration success. Forrestania will pay modest upfront cash consideration totaling approximately $1.4 million, with additional milestone payments contingent on the definition of JORC-compliant Mineral Resources. For instance, if a resource of 25,000 ounces or more is confirmed, an extra $350,000 will be payable. Furthermore, a 2% gross revenue royalty kicks in only after 25,000 ounces of gold have been mined from the acquired tenements, ensuring that payments are closely tied to production outcomes.

This performance-linked arrangement reflects a prudent approach to capital deployment, reducing upfront risk while preserving upside potential. It also underscores Forrestania’s confidence in the geological prospectivity of the Jaurdi Hill area, which lies adjacent to Beacon Minerals’ Jaurdi Gold Project and Processing Plant; a nearby operation targeting over 50,000 ounces of gold production annually for a decade.

Exploration and Development Outlook

Forrestania plans to undertake thorough exploration and infill drilling programs to validate historical data on the Derry’s Own and Pride of Jaurdis deposits within the newly acquired tenements. These deposits are part of the gold-mineralised Jaurdi Hills-Dunnsville greenstone belt, known for its consistent mineralisation and multiple zones of gold.

Simultaneously, the company is finalising its mining lease application over the Ada Ann prospect, a critical step towards advancing its broader Bonnie Vale development strategy. Securing this lease will enable Forrestania to progress from exploration to potential mining operations, further enhancing the value of its consolidated land package.

Regional Significance and Corporate Strategy

Chairman David Geraghty highlighted the strategic rationale behind the acquisition, drawing parallels with Forrestania’s successful consolidation efforts in other Western Australian gold districts such as Forrestania, Southern Cross, and Westonia. By building a meaningful land position around Bonnie Vale, the company aims to unlock synergies and create a platform for long-term growth.

With a refreshed board and a clear focus on disciplined exploration and selective acquisitions, Forrestania is positioning itself as a notable player in Western Australia’s gold sector. The company’s expanding portfolio across the Southern Cross, Eastern Goldfields, and Forrestania regions reflects a commitment to leveraging proven mineralised corridors and advancing projects with strong development potential.