Forrestania Resources has signed a binding heads of agreement to acquire all shares in Midas Minerals (Newington), a subsidiary of Midas Minerals, which owns a collection of gold tenements in Western Australia.
The company will gain rights to both wholly owned and joint venture interests through the acquisition.
Under the terms of the agreement, Forrestania will acquire a portfolio comprising 10 granted mining and exploration tenements.
These tenements include gold interests in the Newington project area, situated roughly 90km north of Southern Cross, within the northern section of the Southern Cross Greenstone Belt.
The overall project area encompasses approximately 212km² and covers a 33km strike length, an area noted for existing gold deposits and historical gold production.
The company has agreed to pay an upfront consideration of A$1.5m ($1.07m) for the acquisition, issuing Forrestania shares valued using the five-day volume-weighted average price (VWAP) prior to the agreement’s execution.
The deal also includes a deferred, performance-based consideration structure, tying further payments directly to the achievement of defined project development milestones.
These include a payment of A$1m upon delineation of a mineral resource, as defined in the JORC Code, or extraction of the first 50,000oz of gold at a cut-off grade of 0.5g/t.
An additional A$200,000 will be payable for each subsequent 10,000oz of gold either delineated or extracted, maintaining the same grade criteria.
A further A$1m will become due upon the announcement of a formal decision to commence mining operations on any of the acquired tenements.
According to Forrestania, the structure of the transaction is designed to preserve near-term cash and align vendor payments with actual project advancement.
Completion of the transaction is subject to customary regulatory and third-party approvals, including any ministerial consents required.
Forrestania expects completion to occur in the coming weeks once conditions precedent have been satisfied or waived.
Forrestania Resources chairman David Geraghty said: “The Newington acquisition represents another important step in Forrestania’s strategy of securing quality gold opportunities across Western Australia through disciplined and shareholder-aligned transaction structures.”
Earlier this month, the company acquired full ownership of Hyden Project Holdings, securing the Hyden Gold Project along with the Lady Magdalene and Lady Ada projects in Western Australia.
“Forrestania Resources to acquire Midas Minerals” was originally created and published by Mining Technology, a GlobalData owned brand.
