High-profile Western Australian miner Forrestania Resources (ASX:FRS) has made a strategic investment to acquire a 19.9% interest in OzAurum (ASX:OZM) through a $4.1 million share placement. Under the placement, Forrestania will subscribe for 56.9K fully paid ordinary shares in OzAurum at 7.2cps.
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Forrestania’s investment follows OzAurum’s receipt of high-grade grade control drilling results at the James Stage 1 open pit, which underpins a proposed heap leach development at Mulgabbie North in the Eastern Goldfields.
Exec chairman David Geraghty explained that the OZM deal gives Forrestania meaningful exposure to an advanced WA gold development opportunity.
“This investment reflects our strategy of building exposure to high-quality gold development opportunities in Western Australia through disciplined and selective capital deployment. OzAurum’s recent results and clear development pathway at Mulgabbie North present an attractive opportunity, and we look forward to supporting the company as it advances the project,” Mr Geraghty said.
“The company believes OzAurum’s work at the James Stage 1 Open Pit has the potential to underpin a compelling near-term development opportunity in the Eastern Goldfields of Western Australia.”
On the other side of the deal, OzAurum’s CEO, Andrew Pumphrey, said that proceeds from the placement will go towards advancing heap leach feasibility and development activities at the James Stage 1 Open Pit.
“This strategic investment by Forrestania represents a strong endorsement of the quality, scale and development readiness of James Stage 1,” he said.
He continued: “Importantly, the placement follows our recent high-grade drilling results, which have materially strengthened confidence in the proposed open pit and heap leach development pathway.”
OzAurum also plans to use the funds to support early mine development at Mulgabbie North and continue exploration upside across the broader project.
Forrestania’s OzAurum move follows the Western Australian company’s recent acquisition of four granted exploration licences adjacent to the Edna May gold mine from Kula Gold; that move went through in September CY25.
FRS has been up +1%, to 47.5cps. OZM is 10.5c, up +29%.
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