Forrestania Resources (ASX:FRS) entered into a binding heads of agreement with Beacon Minerals' (ASX:BCN) Beacon Mining subsidiary to acquire MacPhersons Reward, which holds granted gold mining tenure in Western Australia, according to a Monday filing with the Australian bourse.

The consideration involves a total cash sum of AU$5 million and 36 million Forrestania shares at AU$0.38 apiece, the filing said.

Completion of the agreement is conditional on receiving shareholder, regulatory, and third-party approvals, per the filing.

Forrestania Resources' shares fell past 5% in morning trade Monday, while Beacon Minerals' shares rose nearly 1%.