PERTH: Ramelius Resources Ltd. said Monday it has agreed to sell its Edna May Gold Hub to Forrestania Resources Ltd. for $300 million in cash and stock, a deal that allows the company to cash in on a non-core asset while retaining a stake in its future.
The transaction includes $200 million in upfront cash and $100 million in Forrestania shares, which will be subject to an 18-month escrow period and a further six-month orderly sale commitment, Ramelius said in a statement. A $20 million deposit is payable to Ramelius, with the remainder due at completion.
Completion is contingent on Forrestania securing at least $200 million in binding commitments through an equity raising, shareholder approval for the share issuance, and customary third-party consents. The deal is expected to close in the September 2026 quarter.
Ramelius acquired Edna May from Evolution Mining Ltd. in 2017. Under its ownership, the operation produced 760,000 ounces of gold between 2018 and 2025, generating significant cash flow, the company said. The site has been on care and maintenance since April 2025.
“This is a logical transaction for Ramelius and Forrestania, providing an excellent outcome for all stakeholders,” said Ramelius Managing Director Mark Zeptner. “The combination of cash and Forrestania shares provides immediate value while retaining exposure to future success at Edna May.”
Following completion, Ramelius expects to become a substantial shareholder in Forrestania, which has a market capitalization of approximately $570 million. Forrestania is focused on consolidating assets across Western Australia’s Eastern Goldfields, Forrestania and Southern Cross regions and is currently refurbishing the Lake Johnston mill.
The Edna May mine is located near Westonia, about 315 kilometers east of Perth, and includes open pit and underground operations along with a processing plant capable of handling about 2.9 million metric tons per year.
Azure Capital served as financial adviser and Gilbert & Tobin as legal adviser to Ramelius on the transaction.
