Forrestania Resources Limited (ASX: FRS), a resources company exploring for gold, copper, and lithium in Western Australia, has announced an agreement to subscribe for shares in Kula Gold Ltd (ASX: KGD). The company will invest $1,868,434 in KGD through a Share Subscription Agreement, acquiring ordinary fully paid shares at a subscription price of 2.2 cents per share. This investment will give Forrestania Resources a 7.37% stake in Kula Gold’s expanded capital base.
The investment signifies Forrestania Resources’ strategic focus on consolidating high-quality gold assets within the Southern Cross region. The company’s Forrestania Project hosts gold and lithium prospects near the historic Bounty gold mine, the Covalent Mt Holland Lithium Mine, and the Flying Fox and Spotted Quoll nickel mines in the southern Forrestania Greenstone Belt.
According to Forrestania Resources Chairman David Geraghty, the company aims to strengthen its connections with gold companies operating in its area of influence. The company’s Eastern Goldfields tenements are located within the Norseman-Wiluna Greenstone Belt of the Yilgarn Craton, close to Coolgardie, Menzies and Leonora. In total, this includes twelve Exploration Licences and four Exploration Licence Applications, covering a total area of ~1,000km2.
The Southern Cross Project, also held by Forrestania Resources, is situated in the Southern Cross Greenstone Belt and presents significant potential for gold mineralisation. This latest investment in Kula Gold reinforces Forrestania Resources’ commitment to expanding its footprint in the Western Australian gold sector. This announcement has been authorised for release by the Board of Forrestania Resources.
