Forrestania secures unconditional takeover of Zenith, adds new ore supply deal

Forrestania Resources declared its takeover bid for Zenith Minerals unconditional after acquiring a 58.99% controlling share, satisfying the minimum acceptance requirement. The company will begin issuing shares to Zenith shareholders within the next 14 days, while the offer stays open until November 12, allowing it to pursue the 90% threshold for a compulsory acquisition. Simultaneously, Forrestania signed a binding agreement with Star Minerals to purchase up to 400,000 tonnes of ore from the Tumblegum gold mine over two years, with the first shipments scheduled to start immediately.

The deal ties the purchase price to ore grade, metallurgical recovery and prevailing gold prices, providing flexibility in a strong bullion market. Both actions fit Forrestania's hub-and-spoke model centered on the Edna May and Lake Johnston processing facilities, aiming to build a leading gold business in Western Australia. Regulatory scrutiny from the Takeovers Panel was resolved in September, imposing extra disclosure duties but leaving the transaction intact. The company now focuses on integrating Zenith's assets and the new ore feed into its production pipeline.