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- Secures number of key operational and supply chain agreements
- Enters into a haulage agreement for ore treatment
- New access to commercial laboratory services
- Long-term sodium cyanide supply agreement signed
Forrestania Resources (ASX: FRS) has reached a suite of commercial agreements supporting the development of its Lake Johnston and Edna May processing hub strategy in Western Australia.
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To support its processing hub strategy and planned restart activities, Forrestania has secured a number of key operational and supply chain agreements.
The company has executed a framework agreement with SGS Australia for the provision of laboratory services across Lake Johnston and Edna May, providing access to commercial laboratory services and a pathway for future on-site laboratory capability.
Forrestania has also entered into a haulage agreement with Campbell Gold Haulage, establishing a logistics framework to support the transport of ore into both processing hubs and future regional ore sourcing opportunities.
In addition, the company has executed a long-term sodium cyanide supply agreement with Orica Australia for the Lake Johnston Processing Facility. The five-year agreement commencing in 2027 provides long-term security of supply for a critical processing reagent together with associated cyanide handling infrastructure and technical support services. The agreement incorporates forecast annual supply volumes of approximately 1,000 tonnes per annum and a minimum contracted volume of 5,000 tonnes over the initial term.
As part of restart readiness activities at the Edna May processing facility, Forrestania has also placed orders for key long-lead equipment and consumables.
Replacement SAG mill and ball mill liners have been ordered and are scheduled for delivery in November 2026. The company has further placed orders for grinding media and activated carbon, securing critical consumables required for the grinding and gold recovery circuits.
Forrestania has entered into an ore purchase agreement with First Au Limited that establishes a framework for the purchase and processing of up to two million tonnes of third-party ore over a 24-month period through campaign-based processing arrangements.
Executive chairman, David Geraghty, said collectively, these agreements and procurement initiatives materially advance Forrestania’s operational readiness and establish key processing, logistics, reagent supply and laboratory analysis foundations required to support future operations at Lake Johnston and Edna May.
“We’re continuing to make significant strides following the acquisition of the Edna May Gold Mine. Across our business we are securing the critical ingredients required for successful operations, including ore supply opportunities, laboratory capability, haulage capacity, reagent supply arrangements, mill liners and processing consumables.
“With these foundations progressively being put in place, Forrestania is continuing to advance restart readiness activities while building the operational platform required to support long-term utilisation of the Lake Johnston and Edna May processing hubs.”
FRS was steady at 40.5¢ with a Mkt cap of $643.6M.
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