In a decisive move for the Western Australian gold sector, Forrestania Resources has declared its off-market takeover offer for fellow explorer Kula Gold unconditional. The company has also extended the offer's closing date, effectively shifting the friendly acquisition from the negotiation phase into full integration.
Deal Clears Final Hurdles
The declaration, made on Tuesday, 23 December 2025, removes all remaining conditions from the bid. This paves the way for Forrestania to assume control of Kula's asset portfolio, with changes to the board of directors expected to follow. Both companies' boards continue to unanimously recommend shareholders accept the offer.
Forrestania Resources chairman David Geraghty stated that declaring the offer unconditional was a significant milestone. "It reflects the strong level of support received from Kula shareholders to date," Geraghty said. "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."
Lake Johnston: The Strategic Linchpin
A central pillar of the combined group's strategy is the proposed acquisition of the Lake Johnston nickel processing plant, which Forrestania plans to convert into a gold treatment facility. The company inked a binding agreement with Horizon Minerals in mid-November to acquire the plant and surrounding project for a total consideration of $35 million ($30 million cash and $5 million in Forrestania shares).
The plant, located in the Forrestania region, is seen as critical infrastructure. Once acquired and re-jigged for gold processing, it will provide the enlarged entity with a tangible processing pathway. The facility originally had a nickel production capacity of 1 to 1.5 million tonnes per year and includes standard SAG/ball milling capability.
Consolidating the Eastern Goldfields
The takeover represents a pragmatic consolidation of assets within Western Australia's Eastern Goldfields. All of Kula's projects will be folded into the combined group, creating a tightly clustered portfolio.
Key assets from Kula include:
- The flagship Mt Palmer gold project.
- Southern Cross projects holding gold, kaolin, and lithium.
- South-West WA lithium and gold projects.
- The early-stage Lake Rebecca gold project.
The plant at Lake Johnston could potentially process ore from Kula's Mt Palmer and other Southern Cross assets, either as direct feed or through toll-treatment arrangements.
With corporate governance now aligned behind the strategy, the focus returns to the geology, drill plans, and ultimately, bringing the Lake Johnston plant online. The stated ambition is for the combined entity to become a gold producer in 2026. The success of this consolidation will hinge on its ability to transform a collection of assets into a functioning, profitable operation, potentially establishing a new gold producer in the heart of the Eastern Goldfields.
