Team Veye July 01, 2026

Forrestania Secures A$310M for Edna May Acquisition

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Forrestania Resources Limited (ASX: FRS) announced on 1 July 2026 that it had secured firm commitments for a two tranche institutional placement to raise $310 million to help fund its Edna May acquisition and support broader development plans. The capital raise is a key step in advancing the company’s strategy to build a larger Western Australian gold production business through selective M&A and project development.

The placement was priced at $0.40 per share which represents a 5.9% discount to the last closing price of $0.425. Forrestania noted that the bookbuild received strong interest from institutional and sophisticated investors with support from existing cornerstone shareholders, indicating healthy demand for the issue.

The company also noted that Executive Chairman David Geraghty will invest $1 million into the placement, subject to shareholder approval.

In response to the strong demand and his participation, Forrestania revised the acquisition structure by increasing the cash component of the Edna May transaction to $210 million and reducing the value of shares to be issued to Ramelius Resources to $90 million.

Funds raised from the placement will be used for the Edna May Gold Hub acquisition, refurbishment works at Edna May and Lake Johnston and general working capital.

Forrestania described the transaction as a significant milestone as the Edna May acquisition is expected to give it a second production hub within trucking distance of a substantial part of its gold resource base.

Tranche 1 is expected to settle on 7 July 2026 while Tranche 2 remains subject to approval at an EGM in late August 2026 with completion of the acquisition targeted for September 2026.

(Source: Company Announcement)

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