Forrestania Resources Signs Deal to Process Two Million Tonnes of WA Gold Ore
Forrestania Resources and MEGA Resources have agreed on a two-year supply chain for processing up to 2 million tonnes of gold ore at the company's Western Australian facilities.
Forrestania Resources has finalized an agreement with MEGA Resources to process up to two million tonnes of gold ore over 24 months. The deal grants Forrestania the right to purchase and process material from its Taipan open pit mine, which operates the first campaign under this arrangement. Supply volumes for future campaigns will range between 50,000 and 150,000 tonnes per run. Processing will occur at either of the company's two facilities, Edna May or Lake Johnston, based on operational decisions.
Ownership of the ore transfers to Forrestania upon delivery, allowing it to retain all recovered gold. The commercial formula includes a baseline price of $155 per tonne. This pricing structure applies to ore grading 1.43 grams per tonne with a recovery rate of 91 percent.
The executive at Forrestania stated the agreement advances the company's regional processing hub strategy in Western Australia.
