Highlights

• Auravelle Metals has completed the sale of the Skeleton Rocks Project in Western Australia to Forrestania Resources Limited (ASX:FRS), with settlement occurring on 2 November 2026.

• As consideration, Auravelle has received 681,414 fully paid ordinary shares in Forrestania, equating to AUD 250,000 based on the 10-day VWAP of FRS shares prior to execution of the agreement.

• The transaction completes the streamlining of Auravelle's asset portfolio, concentrating exploration resources on the Nuckulla Hill project in South Australia's Gawler Craton and the Crown Project near Kalgoorlie in Western Australia.

• Auravelle shareholders retain indirect exposure to the Skeleton Rocks Project through the company's shareholding in Forrestania Resources.

Auravelle Metals Limited (ASX:AUV), an ASX-listed exploration company focused on gold discoveries in South Australia and Western Australia, has announced the completion of the sale of the Skeleton Rocks Project in Western Australia to Forrestania Resources Limited (ASX:FRS). Settlement of the transaction occurred on 2 November 2026, with Auravelle receiving Forrestania shares as consideration. The divestment represents the final step in a portfolio rationalisation process designed to concentrate the company's exploration resources on its highest-priority assets.

Transaction Structure and Settlement

The transaction involved the sale of 100% of the shares in Sipa Exploration Pty Ltd, a Wholly Owned Subsidiary of Auravelle that holds the Skeleton Rocks Project tenements in Western Australia, comprising exploration licences E77/2783, E77/2918, E77/2706, and E77/2708. As consideration, Auravelle received 681,414 fully paid ordinary shares in Forrestania Resources, valued at AUD 250,000 using the 10-day volume-weighted average price of FRS shares prior to execution of the sale agreement. The conditions precedent to the transaction were satisfied or waived, enabling settlement to proceed on 2 November 2026.

The structure of the consideration — in shares rather than cash — means that Auravelle and its shareholders retain indirect exposure to the future performance of the Skeleton Rocks Project through the company's Equity holding in Forrestania Resources. This approach is common in resource company transactions where the vendor wishes to maintain upside exposure to an asset without retaining the operational and funding obligations associated with managing it directly. Managing Director Andrew Muir noted that Forrestania is well placed to advance the project and unlock its exploration potential.

Strategic Rationale and Portfolio Concentration

The divestment of the Skeleton Rocks Project is described as completing the streamlining of Auravelle's asset portfolio, consistent with a strategy to concentrate exploration efforts and Capital on the company's South Australian projects and the Crown Project in Western Australia. For smaller ASX-listed exploration companies, managing multiple projects simultaneously can dilute exploration spending, management attention, and capital market focus across too many concurrent activities, reducing the intensity of effort applied to the highest-potential assets.

Auravelle's remaining portfolio is centred on the Nuckulla Hill project in the Gawler Craton in South Australia, where recent high-grade gold discoveries have been the primary driver of market interest in the company, and the Crown Project located near Kalgoorlie in Western Australia. Both projects are characterised as core Business activities with active exploration programmes. By divesting Skeleton Rocks and transferring it to Forrestania — which will presumably be better positioned to advance it within its own strategic priorities — Auravelle is able to direct its resources more intensively toward these higher-priority assets.

Focus on Core Projects and Shareholder Value

The Gawler Craton in South Australia is a significant geological province with a history of major mineral discoveries, and Nuckulla Hill has been Auravelle's primary exploration catalyst in recent periods. The Crown Project near Kalgoorlie operates in one of Australia's most established and infrastructure-rich gold Mining districts, providing a favourable operational context for exploration activities. Both projects benefit from established Australian mining Jurisdiction infrastructure and regulatory frameworks, simplifying the operational management of Auravelle's remaining portfolio.

The Forrestania shares received as consideration from the Skeleton Rocks sale provide Auravelle with an Investment in a fellow ASX-listed explorer, preserving some optionality on the project's future development without requiring ongoing exploration expenditure. The transaction demonstrates a structured approach to Portfolio Management that is aligned with Auravelle's stated strategy of focusing resources on its core gold discovery and development activities.

Key Insights

The completion of the Skeleton Rocks divestment represents a clean endpoint to Auravelle's portfolio rationalisation process, with the company now carrying two focused exploration Assets rather than a broader collection of projects competing for limited resources. For smaller-cap explorers, this kind of portfolio discipline can improve the quality of exploration execution and the clarity of investment thesis for market participants.

The receipt of Forrestania shares rather than cash as consideration preserves optionality for Auravelle's shareholders while also reflecting the typical structure of resource asset transactions where cash-constrained junior companies exchange scrip. Observers may monitor Auravelle's progress at Nuckulla Hill — where high-grade gold discoveries have been the primary interest driver — as the key near-term catalyst for the company following the portfolio simplification.