Forrestania Resources set to secure 100% stake in Western Australia’s Mt Palmer gold project

Perth, Australia – Forrestania Resources has reached binding agreements to purchase three Aurumin subsidiaries from Newcam Minerals, a transaction that will deliver complete ownership of the Mt Palmer gold project in Western Australia and expand the company’s tenure across the nearby Johnson Range and Mt Dimer areas.

Under the terms announced on 2 February 2026, Forrestania will issue approximately 37.9 million new ordinary shares priced at A$0.475 each. The stock, valued at about A$18 million (US$12.5 million), will be transferred to Newcam Minerals in exchange for the Aurumin Mt Palmer entity, which holds the remaining 20 percent stake in the Mt Palmer mining lease and three surrounding exploration licences. Forrestania already controls 80 percent of the asset following its earlier acquisition of Kula Gold, and the latest deal consolidates ownership within a single corporate structure.

In a parallel transaction, the company will issue an additional 13 million shares to acquire Aurumin Johnson Range and Aurumin Mt Dimer. These subsidiaries manage exploration and mining leases that lie within the Marda-Diemals Greenstone Belt, part of the Southern Cross Domain of the Yilgarn Craton. Collectively, the agreements cover mining lease M77/406 and exploration licences E77/2210, E77/2423 and E77/2668 at the Southern Cross Hub, as well as mining lease M77/1263 and exploration licences E16/489 and E77/2560 at the Mt Dimer Hub.

Completion is subject to standard closing conditions, including the issue and transfer of the shares to Newcam Minerals. Forrestania has structured the agreements with milestone payments tied to future resource estimates, ensuring that further consideration will be triggered only when additional mineralisation is confirmed.

Strategic significance of Mt Palmer

Mt Palmer lies about 15 kilometres east of Marvel Loch in the Shire of Yilgarn. The deposit was historically mined both from underground workings and surface pits, delivering roughly 158,000 ounces of gold at an average grade of 15.9 grams per tonne. Forrestania plans to source high-grade ore from the site for processing at its Lake Johnston facility, which is being prepared to restart gold production.

The additional 20 percent interest secures full economic benefit for existing Forrestania shareholders. Company management indicated that consolidated ownership simplifies decision-making, accelerates development schedules and eliminates the need to negotiate joint-venture budgets or work programs.

Expansion across Johnson Range and Mt Dimer

The Johnson Range and Mt Dimer properties sit within the greenstone belts that characterise the Southern Cross Domain, an area known for structurally controlled gold deposits surrounded by granite intrusions. Forrestania views the region as prospective not only for near-surface oxide mineralisation but also for deeper primary lodes, and intends to integrate the new licences with its broader Southern Cross exploration portfolio.

Company geologists have outlined several walk-up drill targets across the Mt Dimer Hub. Any discoveries there could complement feed from Mt Palmer and extend the production profile at Lake Johnston. The milestone-linked consideration structure means that Newcam Minerals will receive additional Forrestania shares only if the projects attain specific resource thresholds, preserving cash for field activities.

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Operational progress

Forrestania initiated a diamond drilling campaign at the Lady Lila prospect in January 2026, focusing on down-dip extensions of previously intersected mineralisation. The program forms part of a broader effort to refine mine plans and secure sufficient reserves to support the planned restart of the Lake Johnston processing plant.

Technical director Brett Hodgins said the transaction aligns corporate resources with the company’s production ambitions. In his view, full control of Mt Palmer streamlines permitting, mine design and financing decisions, while the consolidation of tenure at Mt Dimer offers longer-term growth potential. Hodgins added that the agreements preserve capital by tying a portion of the purchase price to exploration success.

Regional context

Western Australia remains one of the world’s leading gold jurisdictions, supported by modern infrastructure, clear permitting frameworks and access to skilled labor. According to the state’s Department of Mines, Industry Regulation and Safety, the Yilgarn Craton hosts multiple world-class gold camps that have produced more than 400 million ounces since discovery of the first deposits in the late nineteenth century. Forrestania’s projects are all located within trucking distance of the regional highway network, facilitating movement of personnel, equipment and ore.

Management expects to close the acquisition once the share issues are completed and regulatory approvals are secured. After finalisation, Forrestania will focus on defining additional resources, delivering feasibility-level studies and preparing the Lake Johnston plant for commissioning. No changes to the company’s previously stated exploration budget were announced in conjunction with the deals.

Crédito da imagem: Mining Technology