Forrestania declares Kula bid unconditional, extends offer

Forrestania Resources has moved to consummate its friendly takeover of Kula Gold, declaring the company’s off-market offer unconditional and extending the closing date as the two gold explorers stitch together a combined Western Australian portfolio.

The declaration removes the remaining conditions around the bid. It also clears the runway for Forrestania to take control of Kula’s assets, with board changes to follow.

Both boards continue to unanimously recommend acceptance of the offer, a signal that the transaction has shifted from courtship to integration.

Declaring the Offer unconditional is an important milestone for Forrestania and reflects the strong level of support received from Kula shareholders to date. The Offer becoming unconditional allows us to move forward with greater certainty and alignment in advancing the combined asset portfolio and implementing our gold strategy.

Geraghty added that the company remains focused on becoming a gold producer in 2026 following the proposed acquisition of the Lake Johnston processing facility.

The Lake Johnston processing plant sits in the Forrestania region and once acquired, will give the enlarged group a tangible lever to pull as resources are defined and consolidated across the belt.

The plant is the key infrastructure element for the combined group’s processing strategy, which could also include potential toll-treatment or feed from Kula’s Mt Palmer and other Southern Cross assets.

Horizon Minerals inked a binding heads of agreement with Forrestania Resources in mid-November for the divestment of Horizon’s entire interest in its non-core, Lake Johnston project – including the processing plant - for a total consideration of $35 million, comprising $30 million cash and $5 million in fully paid ordinary Forrestania shares.

Forrestania plans to re-jig the plant design for gold processing. Its original capacity for nickel production was about 1 to 1.5 million tonnes per year, but while no specific ball mill size or power rating has been publicly flagged yet, the plant includes standard SAG/ball milling capability.

Forrestania’s takeover of Kula also tidies up the corporate structure around what is already a tightly clustered set of assets in Western Australia’s Eastern Goldfields.

All of Kula’s assets are being folded into that picture. They include Kula’s WA gold assets, with the flagship Mt Palmer project most prominent, alongside its Southern Cross projects for gold, kaolin and lithium, its South-West WA lithium and gold projects, and its early-stage Lake Rebecca gold project.

From a market perspective, the deal has the hallmarks of a pragmatic consolidation with both companies operating in the same postcode and chasing the same commodity.

The next phase will be about demonstrating that the combined asset base can deliver on the stated ambition of production in 2026, with the proposed Lake Johnston acquisition looming as a critical piece of the puzzle.

With governance now lining up behind the strategy, the heavy lifting shifts back to the rocks, the drill plans and, ultimately, the plant.

Forrestania has effectively rung the bell on the deal. What follows will determine whether this consolidation becomes just another historical footnote or the foundation of a new gold producer in the Eastern Goldfields.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au