Forrestania Resources Signs Ore Purchase Agreement With Star Minerals

MT Newswires Live11:10

Forrestania Resources (ASX:FRS) has signed a binding ore purchase agreement with Star Minerals (ASX:SMS) to acquire and process gold-bearing ore from the Tumblegum gold project in Western Australia through its Edna May processing facility, according to a Thursday filing with the Australian bourse.

The agreement permits the company to process up to 400,000 tonnes of ore over an initial 24-month period, with haulage set to commence on Friday, per the filing.

The agreement also gives the company exclusive rights to ore meeting the agreed minimum grade threshold, with pricing linked to ore grade, metallurgical recovery rates and prevailing gold prices, the filing added.

Forrestania Resources' shares fell 2% on recent Thursday trade.

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