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Highlights

  • Forrestania Resources’ share price rose 5% to AUD 0.21 on 12 September 2025 during the trading session.

  • FRS signed a binding heads of agreement to acquire 100% of First Western Gold Pty Ltd, holder of the Burracoppin Gold Project in WA.

  • The Burracoppin Project hosts a JORC 2012 Mineral Resource Estimate of 82,700 ounces of gold at 1.2 g/t Au.

Forrestania Resources Limited (ASX:FRS) has entered into a binding heads of agreement to acquire 100% of the fully paid ordinary shares in First Western Gold Pty Ltd (FWG), a wholly owned subsidiary of Askari Metals Limited (ASX:AS2). FWG holds seven exploration licences and one exploration licence application in Western Australia, including the Burracoppin Gold Project.

The acquisition consideration totals AUD 700,000, comprising AUD 250,000 in cash and AUD 450,000 in shares. Forrestania will issue 2,223,321 shares at completion, based on a five-day volume weighted average price (VWAP) of AUD 0.2024.

As part of the agreement, and subject to Askari shareholder approval, Forrestania will also receive 15 million listed options (ASX:AS2OB) exercisable at AUD 0.022 and expiring 31 December 2028, along with 30 million unlisted options exercisable at AUD 0.06 and expiring three years from the date of issue.

Burracoppin Gold Project

The Burracoppin Gold Project is located 27km west of Ramelius Resources’ Edna May Gold Mine and 27km east of Merredin. The project comprises multiple exploration licences including E70/5049, E70/6127, and northern tenements E70/5997 and E70/5998.

Mineralisation has been defined across three separate zones: Benbur-Christmas Gift, Easter Gift, and Lone Tree. The latest JORC 2012 Mineral Resource Estimate, reported by Askari Metals in February 2025, outlines 2.14Mt at 1.2 g/t Au for 82,700 ounces of gold using a 0.55 g/t Au cut-off grade.

The resource was prepared in accordance with the JORC 2012 Code. Forrestania has noted that while the company has not yet undertaken independent validation of the estimate, it considers the data reasonable.

Additional Exploration Licence Application

To enhance the continuity of the Burracoppin Project, Forrestania has lodged an application for exploration licence E70/6753. The application area lies between existing licences E70/5997 and E70/5998, consolidating the project footprint.

This area includes the Crossroads prospect, previously explored by Moho Resources Limited (ASX: MOH) under a joint venture with IGO Ltd (ASX: IGO), where drilling confirmed gold mineralisation.

Next Steps and Conditions

Completion of the acquisition is subject to several conditions, including financial, legal, and technical due diligence, as well as obtaining necessary third-party approvals and consents. Standard warranties must also be met before settlement.

Market Response

Following the announcement, Forrestania Resources’ share price increased by 5% to AUD 0.21 on 12 September 2025 during trading.