- Agreement relates to future supply and processing of gold-bearing ore from Mt Fisher
- Agreement contemplates potential ore supply of up to 400,000t through processing campaigns
- Agreement provides Forrestania with preferential access to Mt Fisher ore
- Ore to be purchased on commercial terms
Forrestania Resources (ASX: FRS) has entered into a binding Ore Purchase Agreement with High-Tech Metals (ASX: HTM) relating to the future supply and processing of gold-bearing ore from HTM’s Mt Fisher gold project in WA.
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The agreement establishes a commercial framework under which Forrestania may purchase and process ore from Mt Fisher Gold over a period of up to 24 months. The agreement contemplates potential ore supply of up to 400,000 tonnes through processing campaigns.
Under the agreement, ore will be purchased on commercial terms determined by reference to ore grade, metallurgical recovery, prevailing gold prices and agreed treatment and processing charges. Delivery schedules and processing campaigns will be agreed between the parties throughout the term of the agreement.
Executive chairman, David Geraghty, said importantly, the agreement provides Forrestania with preferential access to ore from the Mt Fisher gold project during the term, supporting the company’s strategy of securing a diversified pipeline of internal and third-party ore sources to maximise utilisation of its processing infrastructure and support long-term production growth.
He told shareholders the agreement represents a further step in Forrestania’s hub-and-spoke processing strategy, leveraging its processing hubs to create a scalable platform capable of processing ore from both Forrestania-owned deposits and external sources across WA.
“The Ore Purchase Agreement with High-Tech Metals continues Forrestania’s strategy of establishing a portfolio of third-party ore opportunities around our processing hubs,” Mr Geraghty said.
“As we progress towards the restart of the Edna May Gold Project, Forrestania is already executing on that strategy through the haulage of ore from our Taipan and Tumblegum deposits to Edna May ahead of first ore processing planned for December 2026.
“The Mt Fisher Gold Project represents another source of future mill feed and further strengthens the flexibility and scale of our growing ore supply pipeline.
“By combining our existing ore inventory, internal development projects and third-party supply opportunities, we are building a diversified and scalable platform for sustained gold production and future growth.”
FRS was steady at 31.5¢ with a Mkt cap of $758.8M prior to markets opening.
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