Forrestania Resources closes entitlement offer to support exploration in Western Australia

Lithium and gold explorer Forrestania Resources (ASX:FRS) has closed an entitlement offer to fund exploration at its Forrestania and Eastern Goldfields projects in Western Australia.

The company reports it received applications for $932,853 worth of shares under the entitlement offer and a further $755,704 worth of shares under a shortfall offer.

Additionally, the balance of the offer, which is $247,050 worth of shares, will be allocated to RM Corporate Finance, which fully underwrote the entitlement offer.

Under the entitlement offer, eligible shareholders could subscribe for 2 shares for every 5 held on the record date for $0.07 per share. Participating shareholders also received a free option for every new share, which can be exercised for $0.15 each on or before 30 June 2026.

Forrestania reports the shares and options will be issued today (26 June 2023), and an application is being made for the options to be listed on the Australian Securities Exchange (ASX) under the ticker FRSOA.

Funds raised from the entitlement offer will be used to advance lithium-focused exploration at the Forrestania and Eastern Goldfields projects

Funds raised from the entitlement offer will be used to advance lithium-focused exploration at the Forrestania and Eastern Goldfields projects, and a portion of the proceeds will be used to make a payment to ALX Resources (CVE:AL) as part of the consideration to formalise the proposed joint venture (JV) on the Hydra Lithium Project in Quebec, Canada.

Forrestania Resources is an Australian exploration company searching for lithium, gold, and nickel across the Forrestania, Southern Cross, and Eastern Goldfields regions of Western Australia and the James Bay region of Quebec Canada.

The company’s portfolio of assets includes the Forrestania, Southern Cross, and Eastern Goldfields projects in Western Australia, and the option to earn a 50% interest in the Hydra Lithium Project in Canada.

The flagship Forrestania Project is situated in the ‘well-endowed’ southern Forrestania Greenstone Belt, with a tenement footprint spanning some 100km, north-to-south of variously metamorphosed mafic, ultramafic/volcano-sedimentary rocks, host to the Mt Holland lithium mine (189Mt @ 1.5% Li2O), the historic 1Moz Bounty gold deposit, and the operating Flying Fox and Spotted Quoll nickel mines.

Write to Harry Mulholland at Mining.com.au

Images: Forrestania Resources Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.