Ramelius Resources has agreed to sell the Edna May Gold Hub to Forrestania Resources for $300 million, comprising $200 million in upfront cash and $100 million in Forrestania shares. The deal represents a strategic shift for Ramelius, allowing the company to realize significant value from an asset now on care and maintenance while redirecting capital and management focus toward its core growth projects at Mt Magnet and Rebecca-Roe.
Edna May has been a productive asset for Ramelius since its acquisition from Evolution Mining in 2017, generating 760,000 ounces of gold production across the 2018-2025 period. The operation comprises the Edna May open pit and underground mines, a 2.9 million tonne per annum processing plant, and exploration tenements across the region. The decision to divest comes as the operation has transitioned to care and maintenance, reflecting a natural inflection point in the asset’s lifecycle under Ramelius’ ownership.
For Ramelius shareholders, the transaction delivers dual benefits. The $200 million cash component provides immediate capital that can be redeployed into higher-returning projects or returned to shareholders, while the $100 million share placement in Forrestania ensures ongoing exposure to Edna May’s potential upside. This structure allows Ramelius to lock in current value without entirely exiting the asset, particularly if Forrestania’s planned restart of the processing plant and regional consolidation create additional value. Ramelius is expected to become a substantial shareholder in Forrestania post-completion, giving the company a seat at the table for future developments.
Completion of the sale remains subject to several conditions, including Forrestania securing at least $200 million in binding equity commitments, obtaining Forrestania shareholder approval under ASX Listing Rule 7.1, and satisfying customary third-party consents. A $20 million deposit is payable upfront, with the balance due at completion. The transaction structure also includes flexibility, with Forrestania able to adjust the cash-to-shares mix up to a maximum of $250 million in cash if its equity raising permits, which would reduce the share component to a minimum of $50 million. Completion is targeted for the September 2026 quarter.
Key dates and approvals to monitor include the timing of Forrestania’s equity raising announcement, its shareholder vote on the transaction, and regulatory clearance from relevant mining authorities. The success of Forrestania’s capital raise will be critical, as it determines both the timing of completion and the final mix of cash versus shares Ramelius receives. This announcement has been flagged as price sensitive and material by the ASX.
View the full ASX announcement (PDF)
About Ramelius Resources Limited (ASX: RMS)
Ramelius Resources Limited is a gold mining and exploration company that engages in the exploration, evaluation, mine development, operation, production, and sale of gold. The company operates through three segments: Mt Magnet, Edna May, and Exploration, with a portfolio of projects in Australia. Based in Perth, Australia, the company was incorporated in 1979 and generates the majority of its revenue from gold mining operations.
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