Forrestania Resources Limited has executed two long-term commercial agreements with MEGA Resources Pty Ltd, securing the right to purchase and process up to 2 million tonnes of third-party ore over a 24-month period to feed its Western Australian processing hubs.

The agreed framework provides Forrestania with campaign-based processing parcels ranging from 50,000 tonnes to 150,000 tonnes, which can be directed to either the Lake Johnston or Edna May processing facilities at the company's election. Title to delivered ore transfers to Forrestania, allowing the company to retain ownership of recovered gold and associated minerals. Payments to MEGA are set under a commercial pricing formula linked to a baseline of $155 per tonne at an ore grade of 1.43 g/t and 91% processing recovery. First ore under the arrangement will be sourced from current stockpiles at the Taipan open pit operated by MEGA.

The 24-month ore purchase agreement follows a similar 24-month agreement executed with First Au Limited for up to 2 million tonnes of third-party ore. In parallel, Forrestania has entered into a five-year Master Services Agreement with MEGA. This establishes a standing contractual framework for open pit mining, drill and blast, ore and waste movement, and related support services across the company's asset portfolio through project-specific work orders without requiring separate contract negotiations.

“The execution of both the Ore Purchase Agreement and Master Services Agreement with MEGA Resources represents another important step in advancing Forrestania's processing hub strategy and restart readiness initiatives. First ore to be sourced under the agreement will come from current stockpiles at the Taipan open pit operating by MEGA Resources.”

“The agreement provides a commercial framework to source and process third-party ore through our Lake Johnston and Edna May facilities, whilst the master services agreement establishes a long-term strategic relationship with an experienced mining contractor and provides Forrestania with flexibility and optionality as we progress future mining developments across our portfolio.”

— David Geraghty, Executive Chairman

The Edna May gold project includes an established JORC Mineral Resource Estimate of 30.7 million tonnes at 1.0 g/t gold for 945,000 ounces, with Forrestania targeting the restart of the Edna May Mill in the first half of 2027.

Read the full announcement: Forrestania Executes Strategic Agreements