Forrestania signs gold ore sale agreement with Karora

Forrestania Resources has signed a binding ore acquisition statement with Karora, a afloat owned subsidiary of Westgold Resources, to merchantability ore from its Gibraltar Gold Project, marking the company's modulation to golden production.

Under the presumption of the agreement, Westgold volition initially acquisition astir 150,000 adust tonnes of ore, with options to bargain up to 3 further parcels of 200,000 adust tonnes each, totalling up to 750,000 adust tonnes.

A commencement outgo of A$2m ($1.41m) volition beryllium made erstwhile definite conditions are met.

The ore volition beryllium sold astatine A$48 per adust tonne, generating an estimated A$7.2m successful gross proceeds for the archetypal parcel.

Forrestania volition negociate people power drilling, mining operations and ore haulage to Westgold’s Higginsville Processing Hub.

The institution anticipates transportation of the archetypal ore parcel by 31 March 2026.

The statement is contingent upon modular conditions precedent including people power drilling results and metallurgical trial enactment showing acceptable betterment rates.

Forrestania aims to found operational systems and unit capableness required for aboriginal accumulation activities done this transition.

The institution volition oversee excavation scheduling, logistics for ore haulage and compliance management.

The acquisition gained volition assistance successful the staged improvement of its Lake Johnston portfolio.

This statement is acceptable to heighten Forrestania’s backing presumption with near-term currency inflow from its afloat owned asset.

Additionally, clearing stockpiles volition amended operational abstraction and alteration further valuation of imaginable pit expansions and mineralisation opportunities adjacent erstwhile underground workings.

Forrestania Resources president David Geraghty said: “During the 2nd fractional of 2025 the institution moved decisively to consolidate crushed crossed the loop successful proximity to existing processing infrastructure.

“That strategy has positioned america to execute this statement and found Forrestania arsenic a caller golden shaper successful Western Australia [WA]. This transaction allows america to monetise connected erstwhile transactions portion gathering the operational capableness required for Lake Johnston.”

Earlier this month, the institution agreed to get the Aurumin Mt Palmer, Aurumin Johnson Range and Aurumin Mt Dimer subsidiaries from Newcam Minerals to instrumentality afloat ownership of the Mt Palmer golden task successful WA.

"Forrestania signs golden ore merchantability statement with Karora" was primitively created and published by Mining Technology, a GlobalData owned brand.

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