Forrestania Resources Executes Ore Purchase Agreement With Westgold Resources Unit

MT Newswires Live

02/19

Forrestania Resources (ASX:FRS) executed a binding ore purchase agreement with Karora (Higginsville), a wholly-owned unit of Westgold Resources (ASX:WGX), for the sale of ore from its Gibraltar gold project in Western Australia, according to a Thursday Australian bourse filing.

Ore will be purchased at AU$48 per dry tonne delivered, based on certified dry tonnes, and Westgold will retain 100% of gold and silver recovered from the processed ore. A commencement payment of AU$2 million is payable within seven business days of satisfaction of the conditions precedent.

The initial parcel comprises around 150,000 dry tonnes of ore from the known stockpiles, and Westgold may elect to purchase three additional lots of 200,000 tonne parcels for a total sum of 750,000 dry tonnes.

The initial parcel is scheduled for delivery before March 31.

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