Forrestania Resources Secures $310 Million for Edna May Gold Hub Acquisition

Forrestania Resources secured firm commitments to raise $310 million via a two-tranche institutional share placement. The company will issue 775 million shares at 40 cents each, a 5.9 percent discount to the June 26 closing price of 42.5 cents. The placement drew strong demand from domestic and international institutions.

Existing cornerstone investors participated heavily, allowing the company to increase the cash portion of the Edna May purchase to $210 million and reduce vendor shares issued to Ramelius Resources to $90 million.

Executive chairman David Geraghty committed $1 million to the placement, subject to shareholder approval. The capital raise will finalize the acquisition and fund refurbishment of the 2.9 million tonnes-per-annum Edna May plant. The company reported total gold resources approaching 2 million ounces after the transaction.

Management plans to settle 237.2 million shares under Tranche 1 by July 8, raising an initial $94.9 million.

Forrestania will combine Edna May with its existing Lake Johnston plant, targeting combined processing capacity above 6 million tonnes per year by early 2027. The company holds 623 square kilometres of contiguous tenure near the historic Bounty gold mine and maintains additional projects near Coolgardie and Menzies.

An Extraordinary General Meeting is scheduled for late August to approve the $215.1 million Tranche 2. Completion of the Edna May acquisition is targeted for September.