Highlights

  • Forrestania has executed a formal sale agreement with Poseidon Nickel for the Lake Johnston Project.
  • An AUD 8 million payment has been completed, with a further AUD 20 million in cash and AUD 5 million in shares due at completion.
  • Early contractor involvement has begun to assess conversion of the Lake Johnston processing facility from nickel to gold.

 

Forrestania Resources (ASX:FRS) confirmed it has executed the formal sale agreement with Poseidon Nickel Pty Ltd, a wholly owned subsidiary of Horizon Minerals (ASX:HRZ). The agreement relates to the acquisition of the Lake Johnston Project and associated infrastructure, including tenements, processing facilities, buildings and site infrastructure.

Execution of the agreement satisfies one of the key conditions of the transaction previously outlined between the parties. The acquisition provides Forrestania with access to an established processing facility and infrastructure located within a recognised mining district in Western Australia.

Updated Payment Structure and Timeline

As part of the transaction, Forrestania and Poseidon have agreed to amend the original acquisition terms. Forrestania has now completed an upfront cash payment of AUD 8 million to Poseidon.

The remaining consideration consists of AUD 20 million in cash and AUD 5 million in Forrestania shares. These payments are scheduled to be made at completion, which is expected to occur following Forrestania’s shareholder meeting on 12 January 2026. Completion remains subject to customary conditions, including shareholder approval.

Early Contractor Engagement Underway

Forrestania has commenced early contractor involvement to assess the conversion of the Lake Johnston processing facility from nickel to gold. Several specialist groups have been engaged to support environmental, engineering, mining and financial evaluation work.

Environmental approvals and related work packages are being undertaken by MBS Environmental, while non-process infrastructure assessments are being managed by OTOC Australia. Process plant engineering services are being provided by Polaris Engineering, focusing on potential modifications required for gold processing.

Mining studies, including geology, mine planning, optimisation, scheduling and project execution planning, are being overseen by RG Mining Consulting. In addition, PwC has been engaged to undertake cost modelling, financial analysis and capital and operating cost estimation.

Pathway to Asset Assessment

The Lake Johnston Project includes existing infrastructure that may support future assessment of gold production opportunities linked to Forrestania’s previously reported JORC resources. The processing plant and associated facilities provide a platform for technical and economic studies as the company evaluates development options across its project portfolio.

Company Overview

Forrestania Resources Ltd is an ASX-listed gold exploration and development company with projects across Western Australia’s Southern Cross, Eastern Goldfields and Forrestania regions. The company continues to expand its asset base through exploration and acquisitions across established mining corridors.

FRS shares were trading at AUD 0.300 per share at the time of writing on 31 December 2025, up 3.448%.